Case Study: Turning Not For Profit Into Profit

Turning a profit is a crucial part of every business, but what about not for profit’s? Whilst the title “not for profit” may suggest that these organisations don’t or don’t need to turn a profit, it’s quite the opposite.

The ability to put money back into a not for profit organisation means it can continue to grow and focus efforts on their mission. However, many not for profit organisations struggle to cover their current costs, and in turn, they are unable to put money back in and see the growth they desire.

Let’s explore how Agile CFO has helped one of our not-for-profit clients turn over a profit for the first time. We’ll also take a closer look at the benefits of this highly efficient accounting service, and why it has become a game-changer for businesses looking to streamline their financial management processes.

Our Client

Our client operates in the disability sector, offering day trips and short stay experiences across Australia. Prior to speaking with Growth iQ, this organisation had no system, processes or technology in place for accurately and securely recording and evaluating their finances. 

There was a lot of manual handling and inefficiencies that resulted in them running on an operating loss for several years and relying on grants to get by. On top of this, the bookkeeping and record keeping was incorrect and required a great deal of time to sift through.

Getting Started

The first 6 months were spent scoping out the previous processes, finding inefficiencies and bigger issues that required immediate attention. We reviewed their workforce and system processes where we found five big cost-saving areas that we managed to get some big wins from. 

This lead to outsourcing professionals (i.e. Marketing) as a means of efficiency and cost-saving. As well as implementing new processes and systems, establishing budgets, outlining KPI’s and thorough planning for the future. Including monthly CEO check-in’s on action items and goals.

The Result

After the initial 6-month period of evaluating, cutting costs and implementing efficiencies, we have continued to see fantastic results with this client. 

Their books are now kept up to date, which means their reporting and compliance is seamless and informed decisions can be made in a short period of time. Audits are no longer stressful and the board is happy with the improved level of transparency and efficiency all-round.

Since working with them, our client has doubled their operating revenue while maintaining the same operating costs and without increasing overheads. Their net profit margin has gone from 0% to 20%, and is the first time they have turned a profit in several years. 

They’re now able to operate with continuity and focus their efforts into their purpose and mission.

Our Agile CFO service has revolutionised the way numerous businesses approach financial management. By combining the roles of a bookkeeper, accountant, and CFO into one service, the savings for a single business is upwards of $200k. Not only is it cost-effective, it’s also an agile financial solution that can be suited to businesses of all sizes. 

If you would like to learn more about how Agile CFO can benefit your business, please get in touch by phoning us on (08) 8126 4100 or clicking here.