How We Partnered With a Professional Massage Therapist Using Xero Implementation

Many business owners want to focus on their craft, not on their accounting. Their passion is for their clients, but they often get bogged down in bookkeeping.

We recently partnered with an owner-managed massage therapy clinic who was in this exact position. They had the right cloud technology but needed effective oversight to build confidence, plan for the future, and get back to what they do best.

The Client: A Multi-location Massage Therapy Business

Our client runs a successful massage therapy operating corporation with three locations and 13 contract therapists. The owner, who is also a practicing therapist, is dedicated to growing the business while prioritizing that professional connection with their clients.

The business structure also included a new holding company set up to manage a recently acquired commercial space. This added new financial pressures, requiring tight cash flow management and the collection of rent.

Ultimately, their most crucial need was to trust their financial data. They wanted a "no surprises" approach and clear, simple information that would allow them to plan for the future without getting lost in the technical details.

The Challenge: Limited Financial Visibility and Overdue Books

The main challenge was overcoming a significant lack of trust caused by the actions of their previous accountant. Bookkeeping, reconciliations, and year-end financial statements were all badly overdue.

This created several major problems:

• No Financial Visibility: There was no real-time reporting, leaving the owner with limited to no financial insight for decision-making.

• Inefficient Remuneration: All remuneration was being taken via dividends. This is problematic as it limits powerful planning tools and access to personal tax advantages, like child tax credits or stronger mortgage applications, that a salary can provide.

• Poor Structural Flow: The expense flows between the holding and operating companies were not set up to maximize post-tax cash flow.

  
  

The Solution: Building Trust Through Technology and Advisory

While the client's cloud accounting platform (using Xero, Hubdock, and Plooto) was already in place, it wasn't being used effectively. Our first step was to automate the bookkeeping, reconciliations, AP, and invoicing processes. We also set up a regular payroll to solve the remuneration problem.

Technology, however, was only half the solution. We added a CPA advisory layer, scheduling regular quarterly meetings and ad-hoc check-ins as needed. We provided strategic guidance on:

• Cashflow management

• Salary vs. dividend decisions

• Forecasting for business and personal income

• Cross-charging between the holding and operating companies

A key part of our service is communication. We deliver timely reports with relevant KPIs in an easy-to-use format. We always take the time to explain the data and answer any questions.

We are aware that our clients have lives, and sometimes those lives can take over. While communication is key and especially so during stressful times, we do understand that we provide a service and part of that service is to support our clients as they navigate the journey of life.

Key Takeaways

• Cloud Accounting = efficiency + accuracy. With the right setup, Cloud Accounting fast-tracks business confidence and scalability.

• Strategic Value, Not Just Compliance. A solid, professionally qualified team can add strategic value.

• Communication is Key. We act as a team. We help tell the story to date, so that you can plan the next chapter.

• Trust is Earned. It is the culmination of solid communication, reliable data capture, and analysis, which all lead to excellent planning.

  
  

Want to save time and get clearer insights into your finances? Our team helps businesses move to the cloud with confidence.

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