Oct 21, 2013

Boom without the bust

Good times could spell disaster if not managed properly.

Take one particular company for example. A dramatic surge in trade meant it needed to increase its Confidential Invoice Discounting facility.

The rapid increase in activity put huge pressures on internal processes causing concern from the funder about the quality of information being supplied.

So we were asked to carry out a full review by the asset-based lender and this is what we found:

  • Invoice values recorded through the accounts package were different to the actual invoice value.
  • Day book listings uploaded were therefore incorrect and were not retained for audit purposes.
  • Cash received was misallocated to oldest invoices.
  • BACS payments were being sent to the business' current account.

So we took a closer look at took the following actions:  

  • A seven day review of systems and procedures.
  • Full ledger reconstruction incorporating telephone verification, review of debtor purchase ledger, unravelling incorrect allocations, and reallocation in line with remittance advices.
  • All debtors sent a company letter confirming correct bank details, with follow up calls to ensure changes made.
  • Training on how to operate ABL software correctly.
  • Month end reconciliation.

Through these actions the ledger was reconstructed to reflect its actual value and the business systems/procedures were amended to allow good practice going forward.

We were also pleased to confirm that systems had been at fault rather than a manipulation of the ledger.

This restored the ABL's trust in the company giving them greater comfort when considering increasing funding levels. 

If you would like a review of your clients’ internal financial processes give Mat Hirst a call on 07595 412972 or email mat.hirst@cerberus-group.com

Latest News

Apr 6, 2016

With the help our staff, clients and friends, we helped Wood Street Mission collect just over 13,500 chocolate eggs in support of this year’s Easter Appeal.

Sep 7, 2015

A big congratulations to our Andrew Wilson & Co colleagues for completing the Salford 10k in loving memory of David Longfield.


"The Cerberus Group have provided outstanding insolvency support to the team at Beesley for many years now.

Their service is speedy, cost effective and they work in partnership with us to deliver the optimum outcome.

They are approachable, practical and we enjoy working with them".

Mark Beesley
Managing Director
Beesley and Company