Managing financial processes in an organisation with strict audit, compliance, and reporting requirements presents unique challenges. Without the right systems in place, even routine processes can become inefficient, time-consuming, and difficult to manage.

We worked with a government-owned professional services entity that struggled with manual workflows, outdated financial processes, and unclear reporting—especially at the department level. While high-level financial oversight existed, department managers had to rely on separate spreadsheets to track their finances, which led to inconsistencies and inefficiencies.

To address these challenges, we developed a structured approach that improved efficiency, reduced errors, and streamlined operations as we transitioned into managing their bookkeeping and financial reporting. As a result, the organisation gained better financial visibility and control.

Key Challenges

Annual audits required the organisation to have its financials finalised within extremely tight timeframes—often just days after year-end. These deadlines were even stricter than typical commercial reporting requirements, leaving little room for adjustments. With auditors beginning their review soon after, any inefficiencies in processes added significant pressure.

Through staff interviews and process reviews, we identified several key challenges:

Outdated Accounting System

  • The MYOB system lacked automation, making processes slow and inefficient.
  • General Ledger codes were unclear, leading to frequent misallocations.
  • Project codes were used in place of GL codes, which complicated reporting and created confusion.

Cumbersome Purchase Order (PO) Process

  • The fully manual process required Word documents and multiple emails, slowing approvals.
  • PDF versions s had to be stamped and exchanged multiple times, before being created in MYOB.
  • When approvals were delayed, supplier invoices couldn’t be processed on time.
  • The $500 PO limit created extra administrative work, as additional approvals were frequently required.

Inefficient Invoice and Payment Processing

  • Invoice approvals were manual, requiring stamping and multiple email exchanges.
  • As a result of miscommunication, payments were often overdue, leading to supplier complaints.
  • There was a lack of visibility over outstanding invoices.
  • Debtor invoices were processed manually, often causing delays.
  • The debt collection process lacked automation, delaying follow-ups on outstanding invoices.

Payroll and Leave Management Issues

  • Leave forms were handled manually, leading to delays and errors in MYOB payroll entries.
  • Employees found the TOIL (Time Off In Lieu) process confusing.

Lack of Integrated Reporting and Budget Visibility

  • Monthly reports and budget tracking relied on spreadsheets, which made financial management inefficient.
  • Reconciling financial statements with MYOB was difficult due to inconsistent General Ledgers, leading to discrepancies and confusion.
  • Incorrect expense categorisation made an annual carbon audit a time-consuming, manual process.

Our Approach & Solutions

Recognising these inefficiencies, we implemented a structured roadmap to improve financial management and operations. Consequently, reporting accuracy and financial controls improved significantly.

Transitioned to Xero for Efficient Financial Management

  • Replaced MYOB with Xero to improve automation, reporting, and accessibility.
  • Standardised General Ledger codes for better financial clarity while tailoring specific sections to align with required reporting outputs.
  • Introduced Tracking Categories to support project-based reporting.
  • Automated leave lodgement through Xero, streamlining payroll processes.

Automated Purchase Order and Invoice Approvals

  • Implemented ApprovalMax to digitise and speed up PO approvals.
  • Set up multi-tiered approvals based on supplier, expense type, and delegation rules.
  • Ensured supplier invoices were linked to approved POs, creating an audit trail and reducing errors.

Optimised Accounts Payable and Receivable

  • Enabled automated debt collection reminders, improving cash flow.
  • Set up direct invoicing in Xero, reducing manual data entry.
  • Improved visibility over accounts receivable and payable, ensuring timely follow-ups and reducing payment delays.

Improved Budgeting and Reporting

  • Enabled project-based budgeting using Calxa for better financial visibility.
  • Developed custom board and internal report templates.
  • Updated the General Ledger codes to ensure financial data was correctly captured to facilitate reporting outputs.

Enhanced Time and Job Costing

  • Assessed their existing time-tracking system and its integration with financial reporting.
  • Recommended a phased transition to a better tracking solution to enhance accuracy.

Updated Internal Financial Procedures and Provided Onsite Support

  • Updated their existing financial procedures manual to document new processes and serve as a reference.
  • Worked onsite one day a week (or as needed) to assist with implementation.
  • Attended meetings in person to support decision-making.
  • Conducted in-house staff training to ensure successful adoption of new systems.

The Impact

By implementing these changes, the organisation saw significant improvements in financial management and operational efficiency. The transition to Xero, combined with process improvements, enhanced financial oversight, reduced manual work, and improved reporting accuracy.

  • Stronger Compliance & Audit Readiness – With clearer financial structures and well-documented processes, the organisation was better prepared for annual audits, reducing last-minute adjustments and compliance risks.
  • Reduced Administrative Burden – Automating approvals and streamlining workflows removed unnecessary back-and-forth, allowing staff to focus on higher-priority tasks.
  • Greater Financial Clarity – Standardised General Ledger codes improved oversight, with customised sections to support required reporting outputs.
  • Improved Cash Flow Management – Better visibility over accounts receivable and payable ensured timely follow-ups, fewer payment delays, and more proactive debt collection.
  • Increased Efficiency Across Teams – Digital approvals, structured reporting, and financial training empowered staff with more confidence in managing budgets and financial processes.
  • Better Decision-Making – Onsite support and participation in meetings provided leadership with greater financial insight, allowing for faster issue resolution and more informed decision-making.

Even as an external provider, we worked closely with the CEO, managers, and staff, fully integrating into their financial processes. Beyond day-to-day operations, we also participated in staff social events, strengthening relationships across the organisation.

Looking for a More Efficient Financial Approach?

Navigating complex financial processes doesn’t have to be an ongoing struggle. Whether it’s improving reporting, streamlining approvals, or gaining better financial oversight, having the right systems in place makes all the difference.

If your organisation is facing similar challenges, we’d love to have a conversation about how smarter financial processes can make an impact. Get in touch to see how we can support your team.