Case Studies


Client – A

Blue Accountancy was consulted following a visit by HMRC to carry out a routine VAT inspection, where the business was providing sponsorship and advertising in the Motor Sport industry to clients based outside the EU. However, the company incorrectly was describing the services on their invoices as ‘motor sport services’ believing in good faith that as a result of a previous VAT tribunal hearing that the services were zero rated. The HMRC disagreed with this view and held that ‘motor sport services’  regardless of where the client was based were standard rated and issued an assessment of several thousand pounds against our client. After lengthy analysis of the transactions, and production of various contracts and documents to support our clients case, HMRC relented and agreed that the services were incorrectly described on the invoice, and subsequently reduced the assessment.

Client – B

Blue Accountancy was consulted by a client who suspected that their EPOS terminal was incorrectly programmed and was calculating an incorrect amount of VAT on their sales. After an analysis of the price list programmed into the system, it was discovered that several items which should have been zero rated were being treated as standard rated and that the client had been overpaying VAT on these items for a period of at least two years. Blue Accountancy advised the client on the way to notify HMRC of the error and has put in process a reclaim of the amounts overpaid.

Client – C

Blue Accountancy were approached by this client who had a number of clients who were always late settling their invoices, which consequently led to them having to borrow more money than they would have ordinarily to cover the cash shortfall. As a result of a training exercise undertaken with their finance staff, and providing them with a structured system for debt collection, the average debtor days was reduced from 95 to 45 days. In addition the bad debts of the business have gone down by 30% as a result of the new credit control system.

Client – D

Blue Accountancy were approached by this client who was severely affected by the economic downturn, as their business was heavily reliant on one major client, who had cut back substantially on their activities. Blue Accountancy provided the client with a sales and marketing strategy to help them replace the lost business and to enable the company to survive and subsequently grow through the current climate.

Client – E

Blue Accountancy was appointed to provide accountancy and bookkeeping services to this client, a start up restaurant business. As a result of the credit crunch, the business found itself in severe financial difficulties. Blue Accountancy implemented a comprehensive series of measures ranging from cashflow forecasting, to a sales and marketing plan which enabled the business to increase its sales and continue to grow, and hence survive the economic downturn.

Client – F

Blue Accountancy was appointed to provide business consultancy to this client, a business   established for over 40 years. As a result of careful cashflow management, changes to the remuneration structure of the director which resulted in a substantial national insurance and income tax saving, as well as various other cost cutting exercises, the business has come through the worst of the economic downturn and is now showing signs of growth and profitability.

Client – G

Blue Accountancy was appointed to review two proposals for capital expenditure in a bakery business. As a result of evaluating the proposals, including analysis of the future cashflows resulting from the expenditure, we were able to recommend the management of the business to implement only one of the two proposals. The new machinery is now installed and the business has seen rapid growth as a result of the investment.

Client – H

Blue Accountancy was approached by a client who having obtained an operators licence for a high speed data network, required an evaluation of the business case in order that they can approach potential funding partners to invest in the project. With our knowledge of the telecommunications industry, Blue Accountancy produced a business plan and cashflow, showing in great detail all the potential returns from the business. The business subsequently obtained funding from a Private Equity fund and is trading successfully.

Client – I

Blue Accountancy was approached by a client who was in severe financial difficulties as a result of the economic downturn. Blue Accountancy using its network of professionals and contacts referred the client to an Insolvency practitioner who started the process of a Company Voluntary Arrangement (CVA) with the company’s creditors. As a result of this, a payment plan was agreed with the creditors which prevented the business being wound up.

Having succeeded in keeping the business running and protecting it from its creditors, Blue Accountancy has since implemented changes to management and identified new revenue streams for the business which will help them to grow and eventually pay back all of their creditors.