Introduction:
Multicon Engineers, an electrical engineering firm in Karachi, was juggling multiple long-term projects, each taking 2 to 4 years to complete. With so many projects in the air, they faced serious challenges in tracking profits, managing cash flow, and ensuring timely billing. That’s when The Tech Canvas stepped in to light up their operations.
The Profit and Loss Mystery
- Problem: Multicon struggled to identify the profit and loss for each project. With unclear financials, disputes arose among partners about profit distribution.
- Solution: We introduced Busy Accounting Software with a tailored approach, setting up multiple cost centers for each project. This allowed them to track expenses and revenues accurately for each project, bringing clarity to profit margins and ensuring fair profit distribution among partners.
Cash Flow Conundrum
- Problem: Often, Multicon’s own money got tied up in projects. They were supposed to only spend what they received in advance, but the lack of oversight meant their funds were often stuck in the project pipeline.
- Solution: By establishing a system within Busy Accounting, we ensured that spending on projects never exceeded the client’s deposits. This created a disciplined approach to cash flow management, freeing up their own funds and allowing them to take on more projects without financial strain.
Billing and Expenses Management
- Problem: Keeping track of project expenses and ensuring bills were sent to customers on time was another headache. Delayed billing meant delayed payments, affecting overall cash flow.
- Solution: We set up a streamlined process in Busy Accounting to monitor expenses and track billing schedules. This enabled Multicon to send out bills promptly, keeping the cash flow steady and reducing the risk of project delays due to late payments.
Supplier Contracts Puzzle
- Problem: Managing payments to suppliers was tricky, especially since one supplier often had multiple contracts with them. Tracking payments for each individual contract was a complex task.
- Solution: By utilizing Busy Accounting Software, we created a system to keep detailed records of payments for each supplier’s individual contracts. This brought transparency and accuracy to supplier payments, ensuring that all contracts were managed efficiently.
Keeping Projects on Track with Reports
- Problem: Without regular monitoring, it was difficult to ensure that all projects were running smoothly and according to plan.
- Solution: We implemented a system of bi-weekly reports to keep track of each project's progress. By analyzing these periodic reports, Multicon could quickly identify any deviations from the plan and take corrective actions. This proactive approach ensured all projects stayed on course, minimizing delays and improving overall efficiency.
The Result
With their financials now as precise as their engineering work, Multicon Engineers could finally see the big picture. They identified profits, managed cash flow effectively, ensured timely billing, and kept projects on track. By adhering to this new structure and utilizing regular reporting, they were able to take on more projects simultaneously, boosting their business profits and operational efficiency.
Conclusion
Multicon Engineers' transformation from tangled finances to clear, controlled project management is a prime example of how the right tools can electrify business operations. With The Tech Canvas’s support, they powered up their profits, brought order to their projects, and kept everything running smoothly with strategic reporting.