The Challenge
‍One of the Operations managers that Al Prime dealt with before introduced Barbecue Bliss to Al Prime Capital, our financial advisory and accounting firm, to understand the nature of the problems plaguing Barbecue Bliss and offer a supportive hand to pull it out of its financial distress. The experts at AlPrime investigated the restaurant’s books and found that most of the numbers were inaccurate and had a gaping difference of more than 1000000KWD from its actuals. It was shocking to the restaurant, too, as it had no idea despite getting monthly reports of its performance from their previous accounting firm. Al Prime also identified the company’s difficulties in managing cash and calculating Leave and indemnity. These issues were hindering Barbecue Bliss’s ability to pay its employees properly and handle its finances affecting the overall business performance.  

Solution proposed
The team at AlPrime decided to break the cycle by applying a two-pronged approach supported by effective communication. Internally, Noma’s accounting software system was set up, which consolidated all the parameters like Inventory, account balances, cash flows, and payments in one place, greatly reducing their time in following them up. The Salma staff were comprehensively trained to conduct a physical stock count of all the finished and raw material inventory. AlPrime Web, the accounting Software, also helped in performing the stock count much easier. For instance, the actual inventory count was found to be 12212, while the books reflected only 9333 units. Thus, they could readjust the 2879 units lost in the chaos created by the cascading issues. Noma’s staff were also taught to record different kinds of payments made at Point of Sale (POS) and categorize them as advanced and actual payments for effective tracking of the items. Externally, AlPrime’s team proactively took over the communications with the suppliers and vendors by recording their advanced payments, tracking their payments and payment methods, following up with the suppliers regarding any delay in deliveries, and also by keeping tabs on the bank transactions for each of these deliveries. This approach proved tactical in streamlining all of Noma’s external transactions with various entities and streamlined its operations. The AlPrime team also prepared a system for Noma’s operation team to track the daily closing against the POS entries to eliminate errors. The Software-integration enabled them to use the time to re-enter the invoices for double-checking the workflow or the inventory.

The Result
‍Now that all the issues were handled and solutions were operational, Barbecue Bliss had a clear idea about the Cash inflows and outflows, which enabled it to make informed decisions based on accurate information. Also, Al Prime’s team educated the managers and employees of the restaurant about the various numbers, terms, and concepts involved in the financial transactions so that they’re aware of the process and why it is important. It not only made the entire process transparent but also eliminated all kinds of confusion from the business.

Conclusion
‍AlPrime’s approach to solving the eatery’s problems by providing solutions and also empowering them with the information necessary to continue the process is commendable. This Case study highlights the need to invest in the right accounting firm that understands your business and helps you with the right tools to solve your problems. It also showcases how your business can flourish with continued guidance from an expert and benefit from its Financial Advisory.