The Palcon Group
The Palcon Group has saved approximately $120,000 per year in administration costs using My Accounts from Business Oxygen. Read more about their story below.
Western Australia’s largest and most experienced forest harvesting company, the Palcon Group has established a market position built on a commitment to service, innovation and customer care. The company employs 100 employees and engages multiple contracting service providers.
The directors of the organisation carry a collective 54 years experience in the Western Australian Timber industry. Underpinning this is a long term working relationship with the Forest Products Commission and the Department of Environment and Conservation.
The Business Problem
Due to the success of the Palcon Group the organisation had grown immensely and continues to do so, but with this comes several problems and potential limitations when it comes to data processing and account accuracy.
The directors were finding that the amount of data processing needing to be performed on a daily basis was far too much for their small team. Financial feasibility studies demonstrated that it was not cost effective to employ a large base of administration staff, so they commenced investigating other options.
The use of their existing accounting software program was overloaded with the immense amount of data that the company produced and often decreased the speed of the program and its ability to access information readily. From a management perspective this meant that the process of running reports was onerous and time consuming.
As with most businesses, little actual activity related to the business happens within the walls of the office, therefore another frustration of the directors was their inability to access business data they needed to manage their business from areas not confined to their office.
The more complex the business compliance became the more the directors were finding they relied on key staff members to perform particular functions and to report to them to give them an understanding of all aspects of their business. Whilst this was not an issue in terms of the relationship, it posed a position of increasing risk to the business should something happen to that staff member, or if they should resign.
There was also little opportunity to audit the accuracy of the accounts within the business and it was often found that after the accounts were returned from the company’s accountants they would differ greatly from those contained within the internal accounting system.
Finally due to the overall volume of information to get through accounts were never completed to an accurate point when needed.
The Business Oxygen Solution
We implemented the My Accounts solution into The Palcon Group and all other associated entities. This involved migrating all data from their large Quickbooks database to the online application. We then set about verifying the accuracy of the imported information with the bank information and supplier.
We then created a tailored approach for The Palcon Group to deliver information to us in a way that meant very little manual handling for them and the data input happened seamlessly.
We also implemented a purchase order system that would enable all costs to be tracked and exceptions controlled.
As a result of the implementation all of the information runs live and is far more accurate than ever before, enabling the directors of the organisation a greater handle on all aspects of their business.
All data input happens off site with little to no manual handling by the Palcon staff members.
All bank information is imported live into the accounts and all creditor accounts are reconciled within two business days adding to the overall accuracy of the accounts.
Due to the implementation of the Business Oxygen systems the client has managed to save approximately $120,000 per year in administration costs.