Overview of the Business
This case study features a small business in the wholesale and distribution sector, with annual revenue of up to $5 million. The company had grown steadily over a few years and expanded its operations across multiple locations. However, as the business scaled, its financial systems failed to keep up.
Despite having accounting software in place, it was not suited to their needs. Financial reports were late, compliance was a challenge, and there was a general lack of visibility over the company’s true performance.
That’s when they turned to Elite Plus Accounting for a complete overhaul.
About Our Client
Wholesale & Distribution
Company
Revenue Up to 5 Million
Melbourne Based
The Challenges
When our team conducted an initial review, we uncovered several serious roadblocks preventing the business from operating smoothly. These challenges were causing inefficiencies, compliance risks, and confusion for management.
1. Inappropriate Accounting Software
The business was using software that lacked the capability to support their operational complexity. Without proper automation or structure, the internal team was doing most of the work manually, which led to data errors and delayed processes.
2. Overloaded Chart of Accounts
Their chart of accounts had over 4,000 general ledger (GL) accounts, many of which were either unused, duplicated, or incorrectly categorised. This made reporting unnecessarily complex and difficult to interpret.
3. Excessive Item Codes
The business had accumulated over 8,000 item codes. Many were outdated or not clearly defined. This clutter made tracking sales, margins, and stock performance inaccurate and time-consuming.
4. Irregular and Delayed Management Reports
Management reporting was highly inconsistent. It typically took 15 days or more after month-end to prepare and deliver reports—far too late for effective decision-making. Sometimes reports weren’t generated at all.
5. Stressful BAS Lodgement Process
Because of messy data and slow reporting, BAS lodgements were often delayed or corrected at the last minute. This led to stress within the team, potential ATO compliance issues, and unnecessary risk to the business.
Problem
4000+ GLs
8000+ Item Codes
Late Lodgements of BAS
15 Days Management
Reporting
Our Solution
The team at Elite Plus Accounting stepped in to design and implement a long-term solution. Our approach involved simplifying, streamlining, and modernising the business’s financial systems from the ground up.
Step 1: Strategic Assessment
We started with a deep dive into the company’s accounting setup, including:
- Reviewing the current chart of accounts and item codes
- Analysing reporting processes and timelines
- Evaluating software suitability
- Identifying compliance gaps
This allowed us to map out a clear transformation plan, focused on delivering immediate and ongoing improvements.
Step 2: Chart of Accounts Simplification
We rebuilt the entire chart of accounts to make it practical and purposeful:
- Removed duplicates and irrelevant accounts
- Combined similar accounts under clear headings
- Reduced the number of accounts from over 4,000 to fewer than 200
The new chart allowed for better insights and accurate, real-time reporting.
Step 3: Item Code Restructure
We tackled the 8,000+ item code issue by:
- Archiving outdated codes
- Merging duplicates
- Creating consistent naming conventions and categories
This streamlined the product catalogue and enabled accurate tracking of sales and stock movement.
Step 4: Software Upgrade and Migration
We sourced and implemented a more appropriate accounting software solution (name not disclosed), which offered:
- Real-time data reporting
- Clean and simplified reporting dashboards
- Stronger integration with their operations
We managed the migration to ensure historical data was preserved and reporting continuity was maintained.
Step 5: Revamped Management Reporting
We introduced a standardised monthly reporting pack that included:
- Profit and loss statements
- Cash flow reports
- Balance sheets
- Key performance indicators (KPIs)
Most importantly, we shortened the reporting timeline from 15+ days to just 3 business days after month-end, giving management timely insight to make better business decisions.
Step 6: BAS Lodgement and Compliance
Our team took over the BAS preparation and lodgement process, ensuring:
- Monthly reconciliations were accurate and up to date
- BAS was submitted on time without stress or errors
- The business remained ATO compliant at all times
Solution
New Item Codes <400
New GLS <200
New Accounting Software
The Results
The transformation was significant. With a clean structure, suitable software, and expert oversight, the business experienced rapid improvements across the board.
1. Simplified Financial Structure
- GL accounts reduced by 95%
- Item codes streamlined and reorganised
- Greater financial transparency across the business
2. Faster, Actionable Reporting
- Management reports now delivered in 3 days
- Reports are easy to read and interpret
- Owners can make decisions based on current, not outdated, data
3. BAS Lodged On Time
- No late lodgements since Elite Plus Accounting took over
- No last-minute corrections or data panic
- ATO compliance is now part of a seamless monthly routine
4. Better Decision-Making
- Clean data = clear insights
- Regular reports highlight trends and opportunities
- Business owners are now more confident and in control
5. Time and Stress Saved
- Internal team freed from spreadsheets and manual workarounds
- Clear process for adding new GLs or item codes
Smooth, predictable month-end cycle
Client Feedback
“We honestly didn’t know how messy things had become until Elite Plus showed us a better way. It’s like we went from drowning in data to finally understanding our business properly. Reports now come fast, make sense, and help us grow.”
Conclusion
This case shows that even small businesses can face complex accounting issues if growth outpaces system setup. The right support and structure make a world of difference. At Elite Plus Accounting, we go beyond bookkeeping—we help simplify, clarify, and scale your financial operations.
If your business is drowning in complex accounts, outdated codes, or slow reports, contact us today. We’ll help bring order to your numbers and give you the visibility you need to move forward confidently.
Results
BAS Lodged on Time
3 Days
Management Reporting
Quick Decision Making
get in touch
Connect with Our Experts
If your business is still reliant on manual payroll processes and struggling to keep up, Elite Plus Accounting can help you upgrade to a faster, smarter solution.
Contact us today for a free consultation and discover how we can streamline your payroll, improve employee satisfaction, and save your team valuable time.
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