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Problems we see in most companies, and how we fix them

Not Odoo problems or software problems. Business problems: numbers that don't tell the truth, cash that disappears, time that leaks away. Each has symptoms you'll recognise, a cause you can trace, and a fix with steps.

Figures on this page are approximate illustrations based on situations that recur, not data from any particular client.

Illustrative case with approximate figures

You made $500K profit and have $200K in the bank. Where did the rest go?

It's the sentence we hear most from business owners. The answer is rarely an accounting error, and rarely theft.

The income statement measures profit on the day you sell. The bank measures cash on the day you're paid. The gap between them has names, and you can trace it dollar by dollar.

How do you know this is your problem?

  • The income statement says you're profitable, and you're late paying salaries or suppliers.
  • You borrow to cover a month's expenses even though the year is profitable.
  • You don't know what your balance will be in two months.
  • Partners draw on the basis of profit, then get a shock from the bank statement.

The profit-to-cash bridge

Each line in this chart explains part of the gap between $500K profit and $200K cash. Orange draws cash out; blue adds it back.

Profit and cashDraws cash outAdds cash back
Thousands of US dollars · illustrative0100200300400500Net profit500Customers who haven't paid yet−140Stock on the shelves−95New equipment and assets−60Loan principal repaid−40Partner drawings−45Suppliers not yet paid+40Depreciation+40Cash in the bank200Thousands of US dollars · illustrative0100200300400500Net profit500Customers who haven't paid yet−140Stock on the shelves−95New equipment and assets−60Loan principal repaid−40Partner drawings−45Suppliers not yet paid+40Depreciation+40Cash in the bank200
Show the bridge as a table
ItemEffect on cash (thousand USD)What it means
Net profit500What the income statement says at year end. This is where the story starts, not where it ends.
Customers who haven't paid yet−140You sold and booked the profit, but the money is still with customers. Receivables grew by 140K over the year.
Stock on the shelves−95You bought more than you sold. The money became inventory, and inventory doesn't pay salaries.
New equipment and assets−60A delivery van, shelving, a system. The cash left in full today, while the cost reaches profit over years.
Loan principal repaid−40Loan principal never appears in the income statement, but it leaves the bank every month.
Partner drawings−45What partners took for personal use. Not an expense in the income statement, but cash that left the company.
Suppliers not yet paid+40Payables grew, so suppliers are financing you for now. Cash that stayed with you, but isn't yours.
Depreciation+40An expense taken off profit without a single dollar leaving. We add it back because it never left the bank.
Cash in the bank200What you actually see on the statement.

Why doesn't the accountant's report show this?

The balance sheet and income statement contain every one of these figures, each in a different place. What brings them together is the cash flow statement on the indirect method, which is rarely prepared monthly for the owner, and when it is, it's in language that's hard to read.

So the owner sees profit every month, and only sees the gap once it has reached 300K.

How we fixed it, step by step

  1. We built the bridge monthly, not yearly

    A report that turns profit into cash every month in exactly this form, so the owner sees the gap at 20K, not after it reaches 300K.

  2. We recovered what customers owed

    Receivables ageing refreshed weekly, a credit limit per customer that stops credit sales once passed, and a small discount for large customers who pay within ten days. 90K of the 140K was collected within three months.

  3. We freed the slow stock

    35K of goods that hadn't moved in over six months was cleared at a discount. Reorder points were rebuilt on actual sales rather than estimates, which stopped the over-buying. 55K was freed.

  4. We planned assets and loans

    Buying them wasn't the mistake; the timing was. Any purchase over 10K now goes against the cash forecast first, and upcoming equipment is leased or financed instead of paid in full.

  5. We tied drawings to cash, not profit

    A written policy the partners agree on: draw from surplus cash after a reserve covering three months of expenses, not from accounting profit.

  6. We put the cash forecast on the owner's phone

    A 13-week forecast on the owner dashboard, with a WhatsApp alert when the balance nears the agreed minimum.

+$145,000more cash in the bank, without selling a single extra dollar

Four months later

BeforeFour months later
Thousands of US dollars · illustrative0100200300400200345Cash in the bank12030Receivables over60 days356Stock older than6 monthsThousands of US dollars · illustrative0100200300400200345Cash in thebank12030Receivablesover 60 days356Stock olderthan 6 months
Show the numbers as a table
BeforeFour months later
Cash in the bank200345
Receivables over 60 days12030
Stock older than 6 months356

Living this right now?

We build the profit-to-cash bridge for your company from your real numbers, so you see exactly where your money stands.

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Other problems that keep coming up

Each looks small on its own, and each is often the very reason the cash disappears.

Owner dashboards

Customers pay late, and nobody chases them

Symptoms

  • Receivables grow every month while sales stay flat.
  • You find out a customer hasn't paid in months only when you need the money.
  • No customer has a clear credit limit.

Why it happens

When nobody sees receivables ageing every week, follow-up becomes random, and late payers learn that being late costs nothing.

How we fix it

  1. A receivables ageing report that refreshes itself every morning.
  2. A credit limit per customer that stops credit sales once passed.
  3. A weekly alert for anyone past 30 days, and a collection list ordered by amount.
BeforeAfter
Thousands of US dollars · illustrative02040608062700–30 days482631–60 days35961–90 days414Over 90 daysThousands of US dollars · illustrative02040608062700–30 days482631–60 days35961–90 days414Over 90days
Show the numbers as a table
BeforeAfter
0–30 days6270
31–60 days4826
61–90 days359
Over 90 days414
Data analytics

Your best seller isn't your most profitable product

Symptoms

  • The sales team pushes a product that sells a lot and earns little.
  • You cut prices to sell more, and profit drops.
  • You don't know each product's profit after discounts, shipping and commission.

Why it happens

Most reports show sales, not profit. And when costs are spread evenly across products, a loss-maker looks profitable.

How we fix it

  1. Real profit per product after discount, shipping and commission.
  2. Products ranked by profit, not by volume.
  3. Repricing thin-margin products, and steering the team towards what actually earns.
Margin after discount and shipping (%) · illustrative010203040Product B31Product E27Product C24Product D18Product F12Product A9 · best sellerMargin after discount and shipping (%) · illustrative010203040Product B31Product E27Product C24Product D18Product F12Product A9 · best seller
Show the numbers as a table
Margin after discount and shipping (%)
Product B31
Product E27
Product C24
Product D18
Product F12
Product A9
Odoo

Slow stock is locking up your capital

Symptoms

  • The warehouse is full, yet the items people want run out.
  • Items that haven't moved in over a year are still on the shelves.
  • Inventory value in the books doesn't match the stock count.

Why it happens

When purchasing runs on guesswork rather than data, what doesn't sell piles up and what does sell runs short. Wrong inventory valuation hides the problem in the books.

How we fix it

  1. Correct AVCO inventory valuation in Odoo.
  2. A stock ageing report showing slow items at their value.
  3. Reorder points built on actual sales, and a clearance plan before slow stock loses its value.
BeforeAfter
Inventory value, thousands of US dollars · illustrative01002003002102400–90 days956091–180 days7022181–365 days8510Over a yearInventory value, thousands of US dollars · illustrative01002003002102400–90 days956091–180 days7022181–365days8510Over a year
Show the numbers as a table
BeforeAfter
0–90 days210240
91–180 days9560
181–365 days7022
Over a year8510
Accounting

Month-end close takes three weeks

Symptoms

  • The month's reports reach you in the middle of the next month.
  • The finance team spends the close fixing mistakes.
  • Decisions are made on old numbers.

Why it happens

When transactions are recorded late and corrected at month end, the close turns into an excavation. The problem is the document cycle, not the accountant.

How we fix it

  1. A document cycle that records every transaction on the day it happens.
  2. Weekly bank and supplier reconciliations, not monthly.
  3. A close checklist with an owner and a deadline per item, and reports that go out automatically after it.
BeforeAfter
Days until the month's reports are out · illustrative010203021May19Jun22Jul13Aug8Sep5OctNew cycle startsDays until the month's reports are out · illustrative010203021May19Jun22Jul13Aug8Sep5OctNew cycle starts
Show the numbers as a table
Days until the month's reports are out
May21
Jun19
Jul22
Aug13
Sep8
Oct5
AI agents

Your team spends the day on repetitive manual work

Symptoms

  • Staff key in supplier invoices by hand from paper or PDF.
  • Weekly reports are assembled from several files, from scratch, every time.
  • The same customer questions get answered by hand dozens of times.

Why it happens

These tasks follow a fixed pattern, and a fixed pattern is exactly what AI does well. But automation only works on top of organised data and a working system.

How we fix it

  1. Measure today's time on each repetitive task.
  2. Start with the highest-impact task, with a prototype on your own data.
  3. The agent prepares, a person reviews and approves, then we move to the next task.
BeforeAfter
Hours per week · illustrative051015Keying supplierinvoices143Answering customerquestions124Assembling weeklyreports91.5Reconciling accounts72.5Hours per week · illustrative051015Keying supplier invoices143Answering customer questions124Assembling weekly reports91.5Reconciling accounts72.5
Show the numbers as a table
BeforeAfter
Keying supplier invoices143
Answering customer questions124
Assembling weekly reports91.5
Reconciling accounts72.5

Let's start with a short conversation

Tell us about your current system and what's slowing you down. We'll tell you honestly whether we're the right fit, and what the first step is.

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