Achieving 46% Cost Savings for an Australian E-Commerce Business Through Finance Outsourcing
Expertise Delivered
Client Industry
Our Client
Industry: E-commerce
Founded: 2014
Annual Turnover: AUS $30 Million
Our client entered the supplement market with a vision to redefine industry standards. They aimed to provide authentic, all-natural workout supplements with transparent ingredient details.
Their approach quickly positioned them as a leader in establishing a new benchmark in creating products that deliver on their promises without compromising taste or quality. The business reached an annual turnover of AUS 30 Mil. This was when the client decided to scrutinise their finance operations.
Their aim was to achieve accuracy, standardise the finance processes, improve information flow, and embed cost-saving strategies. In just 60 days, Business Avengers implemented cost savings that saved 46% in finance costs, amounting to $304,000 annually, while significantly boosting their financial performance.
The Challenges Prior Outsourcing to Business Avengers
Before partnering with Business Avengers, our client faced significant challenges that hindered their ability to manage financial operations effectively.
What were the Challenges?
- The client and senior management were disappointed by the inadequate flow of finance-related information (like P&Ls, balance sheets, cash inflows & outflows, payroll, etc.)
- No timely reports for key financial data, hindering the projection of future business goals.
- Delay in the month-end closing process, directly implicating the financial cycle.
- An undermanaged workforce caused an unnecessary workload for finance and management teams.
- The absence of reliable data impaired the client’s ability to understand the true financial health of the business.
- Planning and forecasting the allocation of funds was impossible due to inaccuracy in reports.
Solution
After partnering with the client, we thoroughly analysed the client’s existing finance processes, systems, policies and stakeholder requirements. Within a 60-day period, Business Avengers worked closely with the CFO and team to take over all the transactional work, ranging from bookkeeping to posting month-end journals and producing P&L and BS.
Finance Organisation Chart: Before
Total salary cost (excluding CFO): 660k
Before Partnering with Business Avengers:
- The client’s finance team was overstaffed, with roles including CFO, Financial Controller, Senior Accountant, Cost Accountant, Assistant Accountant, and Junior Bookkeeper.
- This structure led to inefficiencies, high labour costs, and overlapping responsibilities.
- The finance function was heavily reliant on manual processes, causing delays in reporting, inaccuracies, and increased workload for senior management.
Finance Organisation Chart: After
Total salary cost (excluding CFO): 356k
Results of Outsourcing to Business Avengers:
- A Part-time CFO Advisory replaced the need for a full-time Financial Controller.
- The core team was streamlined to include a Financial Accountant and an FP&A Analyst.
- Routine tasks, such as bookkeeping, were handled by an Accounts Officer provided by Business Avengers.
- A 46% reduction in costs, saving the client $304,000 annually, was achieved through role optimisation and efficient outsourcing.
Cost savings achieved: 304k (46%)
Our single dedicated resource with the client ensures that roles and responsibilities are met, including processing accounts payable, payroll, bank, debit and credit card reconciliations, post-month-end journals, assistance with audit samples and other administrative work.
Expertise and Support: Business Avengers demonstrated their expertise by successfully handling the client’s finance operations. Their close collaboration with the CFO and other teams ensured a smooth transition and adherence to the company’s policies and processes.
Client Testimonial: “Partnering with Business Avengers was transformative for our operations. The streamlined processes and cost savings gave us actionable insights, enabling smarter decisions and greater customer impact.”
Why Business Avengers?
Our client knew the benefits of outsourcing finance operations and partnered with Business Avengers over a 12-month period to deliver a comprehensive transformation of their finance function. This included optimising critical areas such as accounts payable, receivables, payroll, debit/credit card reconciliations, posting month-end journals, and producing P&L and BS).
We developed a strategy to optimise their salary costs by up to 304k, initially around 660k for finance leaders (excluding CFO). To date, we have one resource dedicated to them for managing accounts payable and receivables.
Conclusion
The client successfully overhauled its finance operations through collaboration with Business Avengers, achieving significant efficiency and cost management improvements. By realising cost savings of 46%, amounting to $304,000, and enhancing productivity, the partnership not only streamlined processes but also created a positive impact across all stakeholders.
The improved financial reporting gave the management team actionable insights, empowering them to make informed decisions that brought more customers. This transformation highlights how Business Avengers can help organisations optimise their finances, enabling them to focus on their core business.
Reaping the benefits of cost efficiencies and robust financial management can only be achieved with effortless financial outsourcing.
