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Success Story: Transforming Financial Reporting with Xero, Dext, and A2X - The Kala Atkinson Case Study

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When an eCommerce business with a turnover of over £1m approached Kala Atkinson, they were struggling with inaccurate bookkeeping that misrepresented their financial position, especially their gross profit. Despite healthy sales, the business was unknowingly making a loss due to incomplete and inconsistent financial records.




The Challenge: Inaccurate Gross Profit Reporting

Before working with us, the business relied on manual bookkeeping systems that failed to accurately track their cost of goods sold (COGS) and other key financial data. This resulted in unreliable financial reports, leaving them in the dark about their true profit margins. Without clear visibility into their gross profit, the company was unable to make informed decisions about pricing, spending, and overall business strategy. The result was a loss-making business with little control over its financial health.


Our Solution: Introducing Xero, Dext, and A2X

We implemented a streamlined solution using Xero, Dext, and A2X to automate the company’s financial processes and provide real-time, accurate reporting.

  • Xero allowed us to automate their bookkeeping, providing instant access to financial reports, including detailed profit and loss statements.

  • Dext simplified their expense tracking by automatically processing receipts and categorizing expenses, ensuring that COGS was accurately recorded.

  • A2X was integrated to reconcile eCommerce sales data from Shopify, ensuring accurate and up-to-date sales records.


The Transformation: Accurate Monthly Management Reports

With the integration of these tools, we began providing monthly management reports, focusing on gross profit. These reports gave the business owner full visibility into their profit margins, showing where costs could be cut, and where profits could be improved.

  • Clear Gross Profit Visibility: The automated systems allowed us to accurately track COGS, sales, and other essential metrics in real-time, giving the business an accurate picture of their gross profit margins.

  • Better Decision-Making: With these reports, the business owner could make informed decisions about pricing strategies, operational costs, and inventory management.

  • Reversal of Losses: With clear insights into their financials, the business was able to adjust pricing and reduce unnecessary expenses, reversing their loss-making trend and turning a profit.


The Outcome: Profitability and Growth

Within a few months of implementing this solution, the business saw significant improvements:

  • Increased Gross Profit: By understanding their true profit margins, they were able to increase profitability by optimizing their pricing and reducing costs.

  • Efficient Financial Management: Automation through Xero, Dext, and A2X saved the business hours of manual bookkeeping work each month.

  • Sustainable Growth: With accurate, real-time data at their fingertips, the business owner gained the confidence to make long-term strategic decisions, driving growth and sustainability.


At Kala Atkinson, we understand the importance of accurate financial reporting, particularly when it comes to gross profit. Through the implementation of Xero, Dext, and A2X, we helped this business gain full visibility into their financial health, turning their losses into profits. If you’re struggling with unclear financial data, get in touch with us to see how we can help you transform your business with automated, accurate bookkeeping solutions.


Start a conversation today - book a call with our experts.



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