Cashmere Outfitters

Make informed financial decisions thanks to better management of your finances

BDC has far exceeded our expectations. In addition to meeting our immediate financial management needs, BDC's specialists helped us improve our efficiency by developing a simple process and tools that allow us to reconcile our accounting with our inventory at the end of each month.

The company designs and manufactures high-end clothing under several brands, including Cardinal of Canada, Nikky New York, and Landscape.

About the company

Cashmere’s high-end cashmere and wool clothing is sold through luxury retailers across North America.

Location: Town of Mount Royal, Quebec

Industry: Clothing

Entrepreneur challenge

With numerous brands and products in its portfolio and a customer base spread across North America, the company wanted to restructure its financial accounting system to better record and measure its profitability by segment (product categories, brands, and customers) and be able to produce comprehensive and realistic financial forecasts. The company was also dealing with the fact that its accounting software was not integrated with the operational software used for inventory management. As a result, inventory transactions were not automatically generated and recorded in the accounting system, making it much more complex to reconcile inventory and accounting records.

BDC expertise

After a thorough analysis of the company's needs and of its business model, BDC’s financial management specialists proposed a two-step approach. First, the team improved several financial processes related to inventory management, transaction recording, segment profitability calculation, cash flow management and financial forecasting. Second, BDC developed and helped the company implement simple and effective financial tools, including a monthly inventory tracking tool, a revenue and cash flow forecasting tool, and a budget modelling tool.

Results

Improved long-term financial forecasting, allowing for proactive financial management
Increased control and more effective financial management of inventory, helping reduce potential losses
Increased financial agility, allowing for more results-based business decisions and improved access to financial data
Possibility to prepare detailed financial forecasts, including treasury forecasts and various budget scenarios, in order to better allocate financial resources

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