MJA Studio

MJA Studio is a dynamic and nimble design practice. The studio is headed by recognised leaders in commercial, mixed-use and multi-residential architecture.  MJA has won numerous awards for their work and have recently expanded to open a Melbourne office.

The Challenge

When KHT started working with MJA, the Directors were focussed on delivering a superior service to their clients.  As a consequence, the business was growing. 

Whilst they had an internal bookkeeper, there was no one in the business to focus on core financial matters or financial strategy.  Further, there was no system of monthly management reporting.  This meant the Directors were not certain of how they were tracking with cashflow and profit month-to-month. 

Like any growing business, cashflow needs to be managed as profits are injected back into the business.  Key cashflow items, such as tax payments, weren’t always budgeted or planned for, leading to some surprises at tax time.

MJA needed an entire finance function to:

• Devise and execute a financial strategy

• Implement an appropriate system of financial control

• Ensure all administrative tasks are accurate and completed in a timely fashion

• Select and manage the appropriate financial tools.

As for most small businesses, employing a full team to perform this function was not an option; nor did it make sense.

The Directors wanted to focus on delivering to their clients, but also wanted to have a sound financial underpinning.

The Opportunity

Working with MJA we identified a number of areas of opportunity. 

After a thorough review of the business structure, it was decided there would be great benefit in completing a restructure.

Monthly management reporting with Key Performance Indicators would be implemented.  A system would also be implemented for ongoing tax planning and tax cashflow forecasting, alongside budgeting and cashflow management.

We also identified the benefits of moving to a cloud-based accounting system (Xero).

The Outcome

The transition to Xero and monthly reporting on business KPIs went smoothly.  Xero enabled KHT to follow the business in real-time.  We also selected some Xero add-ons which gave us KPI reporting.

We set up a system of monthly management meetings.  KHT was tasked with preparing the monthly reports for these meetings.  The benefits of these meetings became evident, as the MJA Directors saw it as an opportunity to move beyond a discussion of just the numbers to broader company issues.

KHT started their engagement with MJA with a single-minded focus on providing their client with absolute financial certainty.  With this as an underlying philosophy, the directors of MJA are now able to focus exclusively on providing a superior service to their clients knowing their core financial considerations are fully managed by KHT.

gtmedia

Our client gtmedia has kindly allowed KHT to share this case study of how our two organisations work together.

gtmedia is a Perth-based strategic communications consultancy. Its principal Gemma Tognini and the gtmedia team provide advice across crisis management, government and public relations. Gemma is also a columnist with The West Australian and a regular contributor to Sky News Australia, including hosting The Front Page.

Gemma started gtmedia in her late 20s. She had joined Channel 7 Perth as a cadet journalist and worked through a range of assignments with the network including reporting, investigations and hosting weekend news broadcasts.

When Gemma started gtmedia, she was an enthusiastic news specialist with no particular interest in nor aptitude for the ‘business’ side of her business. This is not uncommon for our clients. A lot of accountants would despair of this. We welcomed it. Not because Gemma is my sister but because Gemma is a smart, opinionated expert in her field. And because she’s smart, she understands that there are areas of her business where her passion isn’t enough.

Since the first days of gtmedia, we have been the de facto CEO. Gemma is 100% responsible for the strategic direction and ‘feel’ of the business. She wins the work and services her clients. Impeccably. We take care of the ‘business’.

KHT does all the normal things for a business client. We keep gtmedia up to date with its ATO and other obligations. We maintain its bookkeeping, such that the business numbers are current and provide the reports that help Gemma understand where the business is at and where it is going.

KHT also advises gtmedia on its strategic planning. This is an ongoing one-to-one and one-to-several engagement. We act as Gemma’s sounding board for staffing and client matters. We assist her with business direction and resourcing decisions. We have input into business direction and development. We also help Gemma facilitate wider discussions with her team. Guess what? They are a passionate and enthusiastic group of specialists, just like Gemma. And they are learning about business every day from the assistance that KHT provides.

Could we or would we do this for every client? No.

However we deploy these same skills for all our clients that help experts like Gemma and her team do what they do best.