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ARTICLE · 05 OCTOBER 2022

Reviewing business operations & costing models

Worrells
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The businesses improved profits by developing models which eliminated unprofitable work and reduced overhead expenses.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Graeme Still
Graeme Still
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Advice sought for a small fraction of the profits both businesses now enjoy

Recently, Worrells Consulting gave advice to two businesses that had positive and consistent growth in revenue and size but concurrently had a substantial decline in profit.

Both businesses' accountants/advisors were:

  • trying to (unsuccessfully) convince their client to change their costing models (which were developed but the client wasn't taking them seriously); or
  • unfamiliar/uncomfortable with the process of developing a costing model. And were inundated with formal tax and other business service requirements for their client that even if they could develop a costing model, they didn't have the time to do so.

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