Company from £1.5M Loss to £1M Profit
Client Overview
A UK-based events management company struggling with significant financial losses. When we began working with them in 2018, they were facing a £1.5M loss, primarily due to budgeting misalignment and poor financial oversight.
The Challenge
- Lack of financial control—The production team created budgets, but there was no link between budgeting and actual accounting.
- Untracked project expenses—Costs were being incurred and paid without proper reconciliation to project budgets.
- No accountability in production budgeting—Project teams were not held responsible for profitability, leading to unnecessary spending.
- Inefficient financial systems—No PO system, project tracking, or structured financial processes.
Our Approach
Budgeting & Accounting Alignment:
We completely restructured the financial workflow, ensuring accounting only recorded approved project expenses that were part of the pre-set production budgets.- Project Reconciliation:
We introduced detailed project reconciliations, ensuring that every event was tracked against its budgeted cost. - Profit Accountability for Project Managers:
Created profitability benchmarks per job, ensuring the head of production and project managers were accountable for the financial success of each event.
Provided real-time reporting to help them track profitability and adjust spending accordingly. - Process & System Implementation:
Set up a Purchase Order (PO) system to control spending and track approvals.
Implemented job reconciliation systems, ensuring that every event budget was reviewed post-production to analyse variances and improve future planning.
Streamlined vendor payment processes to improve cash flow management.
The Results
- From £1.5M Loss to £1M Profit in One Year – A complete financial transformation.
- Full Budgetary Control – Every project now follows a structured financial approval system, reducing unnecessary expenses.
- Project Managers Held Accountable – The production team is now responsible for maintaining profitability on every job.
- Scalable Financial Systems – With P.O. tracking, project reconciliation, and financial accountability in place, the company is now positioned for long-term sustainable growth.
Conclusion
By bridging the gap between production budgeting and accounting, Unreconciled completely transformed the financial health of this events management company—turning a £1.5M loss into a £1M profit in just one year.
From financial chaos to structured profitability, we built a system that keeps them in control.
