Background

Spherica Business Solutions Limited is a progressive, automation-first IT Managed Services business that has spent more than a decade providing mission-critical services across complex IT infrastructures, in both the public and private sector. They work to identify and deliver efficiencies and business-changing innovation through their “relentless automation” approach. By fusing people, technology and automation, they increase speed, consistency and reliability to revolutionise IT operations – delivering more with less.

Visit our client here: https://www.spherica.co.uk/

The brief

Due to their sustained growth, Spherica was looking to engage a team of advisers that could take them to the next level and support the management team in a proactive, commercial and forward-thinking way. Following a recommendation and a successful tender bid, Perrigo Consultants was chosen as their preferred tax advisors and accountants. Their specific requirements were:

  • Implement a solid root and branch 3-year integrated forecast
  • A financial split of the business using departments
  • Financial support on bids
  • A more in-depth understanding of Xero their accounting software system and further training for the internal accounts team
  • Cash flow forecasting and planning via the use of the Spotlight and Fluidly apps
  • Support with the recruitment of a qualified in-house accountant
  • Company car fleet advice
  • Business valuations
  • Ensuring they were tax efficient in every area of the business.

Our part

Implement a solid root and branch 3-year integrated forecast
We worked hand in hand with the management team to ensure that all financial areas of the business had been fully considered and all future scenarios effectively planned for, in terms of profit and loss, balance sheet and cash flow. The management team found this joint collaboration to be an incredibly powerful exercise to go through, to ensure the company’s growth was consistent, sustainable and balanced. The forecasts were then successfully loaded into the company’s software accounting platform Xero and Spotlight Reporting, a consolidated forecasting and reporting package.

A financial split of the business using departments
The directors’ aim was to ensure that every key area of the business was fully analysed and understood, outlining and documenting the key drivers and business opportunities. The specific financial areas were then assigned to a budget holder to ensure the individual department areas pulled together in the overall consolidated company forecast and plan. Once the departmental budgets had been understood and agreed upon, they were uploaded into Xero so daily and monthly actual results could be compared to those forecasted.

Financial support on bids
As and when needed, we support the team in preparing financial information for tenders to ensure accurate information is provided in a timely and professional manner. Due to our in-depth understanding of the key financial information, we are well placed and always on hand to fully support when needed.

A more in depth understanding of Xero their accounting software system and further training for the internal accounts team
Xero is an exceptionally powerful and intuitive accounting tool in so many financial areas, both in terms of the level and detail of reports offered and the ability to integrate into third party apps. As Xero experts and Xero platinum partners, we were able to offer full support and training to the internal accounting team at Spherica. We continue to work alongside the accounts team and are on hand to answer any software related or financial questions.

Cash flow forecasting and planning via the use of the Spotlight and Fluidly apps
As any ambitious management team, Spherica is aware that ‘cash is king’ and is obviously keen to understand how the company’s cash position fits into supporting their successful and rapid growth. The Spotlight and Fluidly apps sit alongside and integrate with Xero and with some simple tailoring, provide a solid and flexible tool to forecast the cash position on the back of any management and operational decisions historically and also those projected. The management team now has an intuitive tool to give clarity and visibility on their current and future cash position.

Support with the recruitment of a qualified in-house accountant
We were delighted to advise on the recruitment and subsequent hiring of a fully qualified in-house accountant.

Company car fleet advice
Advice is provided to the directors to ensure everything financially related is commercially driven whilst considering HMRC tax breaks and initiatives. We were fully able to advise on the company car fleet to ensure advantage was taken of HMRC’s electric car legislation both in terms of company and personal tax.

Business valuations
As with any ambitious and growing company in the tech sector, Spherica needs an indication, not only of future financial direction but also future financial valuation and ways of maximising this. Additionally as part of this process, suitable business acquisitions and partnerships may materialise in which an indicative valuation is required. We have been able to assist and advise on company valuations to fit in with the strategic growth of the business.

Ensuring they were tax efficient in every area of the business
On engagement, a full root and branch review was undertaken of the company’s financial operations to ensure everything was being undertaken in a tax efficient manner in accordance with HMRC’s guidance and legislation. A number of things were adapted and revised to ensure Spherica was working as smart as possible and taking advantage of all HMRC’s initiatives such as company car schemes, remuneration planning and trivial benefits allowances for employees.

Ongoing support

Through regular meetings and reviews, we continue to work closely with Spherica on all financial areas, to give them invaluable insight, direction and ability to scope and plan into the future.

Our partnership with Perrigo Consultants offers us clarity on our financial position and confidence in the future. The team at Perrigo Consultants is always on hand for any financial advice we may need at any time and it’s fantastic to have everything taken care of with such professionalism, accuracy and in such a concise manner.

Steve Jennings - Managing Director