situation one
Manufacturing operation of high end hunting and sporting bags was concerned about out of control costs and possible internal theft.
Owner had limited accounting visibility, no clear cost records, insufficient controls, and lacked critical reporting features to run and manage the business.
As long as you do it slowly you can bleed someone dry without them knowing it. Often the only clue is an uneasy gut feeling."
action
After analyzing transactional reports from the accounting system to uncover a variety of control and bookkeeping problems, including single-sided entries and problems associated with unapplied accounts payable. Identified systems and core issues to provide owner with financial documentation on operational costs and accounting and internal control issues.
result
We uncovered internal theft of funds by the controller amounting to $250K. Provided documentation on changes to manufacturing process to reduce cost of goods sold on product. Owner was able to make well informed decisions to position business to be sold in the future at premium. Owner was able to realize additional operation savings.
It is a good idea to hire an outside auditor once a year to review your controls and accounting records for accuracy. Preventive procedures help fend off unsavory tactics and can save money long-term."
situation two
Director of Finance at radio marketing company experiencing staffing shortage and increased in customer activity hired us to maintain continuity in business operation and billing process.
action
Assisted on data entry and constructed analysis on book of business to ensure accounts payable and receivable were correct. Collaborated with internal stakeholders and learned systems rapidly to keep client on track seamlessly.
result
Allowed client time to hire permanent employee without losing valuable time and revenue while also ensuring double payments were not being made to vendors as revenue was dependent on expense activity.
It is effective to outsource short-term work gap roles for staffing transitions, especially in situations where dynamics of role do not leave room for errors."
situation three
Investment casting foundry needed help identifying and analyzing out of control manufacturing costs, out of date accounting system, and large fixed costs basis, and unclear customer profitability. Operation had incurred an increasingly larger operating deficit. Staff turnover, idle capacity, and lack of training made running the operation more difficult. Lack of a good internal accountant meant owner had incomplete and out of date information for making decisions. Owner’s personal interest made tough decisions more difficult.
Relying on straight accounting data may lead you to make less informed decisions. When dealing with fuzzy input variables in a business it is wise to understand job costing."
action
Conducted costs studies of operations, analyzed quality initiatives, audited accounting books to understand overall costs, interviewed line staff to understand activities, gained knowledge on raw materials input costs, conducted an in-depth analysis of the accounting records, installed new accounting program, worked directly in new accountant and quality director to create product costing and profitability models.
Cost studies on profitability are an effective to gain insight on the business profitability portfolio."
result
Identified 60% of revenue controlled by one client contributed to $250K annually. Created documentation for management team showing product profitability or loss. Recommended action steps to take for management to reduce cost and grow revenue. Findings clearly demonstrated going concern issues even after realizable expense reductions. Profitability analysis tool reducing quoting and job costing time by over 50% freeing up sales force time to build relationships. Owner eventually pursued sale of business.
Separation of business from personal matters is critical to making tough decisions. Staying in status quo can be costly."
situation four
Non-profit minority community service client needed accounting and QuickBooks training and documentation due to lack of internal knowledge and resources.
Non-profit and small organizations often lack the specialized skills on staff to execute on unique one off projects.
action
Built a PowerPoint presentation in a step-by-step process from beginning to end, cut out repetitive and non-value added narrative arriving at meaningful and concise bullet points, images, steps, etc. We tapped our existing knowledge base, researched information online, condensed, refined, selected, and applied information.
Knowing when to outsource business functions is important to growing the business and not spending time on wasteful non-core activities better left to the professionals.
result
Delivered PowerPoint presentation used to train and educate the business community on accounting and QuickBooks. The presentation is now part of the regular small and start up business development program.
Proper documentation and training resources are important for staffing."
situation five
Window blind and treatment design and installation company needed assistance with problems related to high expenses, excess inventory, and poor profitable model.
Letting things get out of hand before trying to put the fire out is a risky and costly approach to managing a business."
action
Analyzed and sorted through expense information, past due bills, and a manual check register to arrive at conclusions about revenue and expense. Reviewed catalog and web site initiatives to ensure appropriate steps and material were being addressed and delivered.
result
Empowered and focused business owner on design functions of business. Determined that owner was actually storing expensive product with limited resale potential in an effort to save money in the near term. Suggested order only 10% more than required and price jobs accordingly. Identified that the commercial market was a profitable target segment.
Knowing target market, price sensitivity, and competition are key components to building a more profitable enterprise."
situation six
Financial services company required a sales trend and forecasting to model for income streams, run-off rates and revenue growth goals to meet desired profitability scenarios.
action
Analyzed transactional history, billing system, sales database and worked with billing department, managers and marketing department to gain an understanding of product earnings patterns. Built financial models to deliver meaningful decision making reports to management.
result
Built multidimensional revenue and income earned model based off a complex set of product variables. Utilized MS Access to construct a database with queries to calculate outcomes and run scenarios quickly.
situation seven
Medical device startup inventor needed assistance on multiple product launches. Company lacked capital, knowledge and resources to effectively create a business plan, raise capital, and bring new products to market.
action
Constructed lists for managing situation, including: deliverables, prospects, sales and marketing needs, and business development activities. Identified key resource needs and engaged in meetings. Helped to construct a team of resources to move product and company forward. Built financial components of the business plan to raise $1mm in capital.
result
Constructed financial statements and scenarios for business plan. Created strategies on product costing, pricing, and margin. Help author sales management tools.
situation eight
Technology division of large national bank needed a resource to manage financial aspects of multiple high value / high impact projects, including budget, actual, monthly performance, and analysis of project financial performance.
action
Quickly learned key software technology to deliver on activities proactively. Constructed lists for managing situation, including: delivered on opportunities to deploy software to access, model, analyze and report financial and non-financial data.
result
Reduced administrative time by an estimated 25% delivered decision making and analysis results to technology managers across eighteen unique processes. Deliver critical performance information to end users and eliminate additional non-value added steps from routine processes. Through research and investigation skills identify key assumption criteria for project modeling and then deliver recommendations for modifications to conversion schedule to bring models back in line revised expectations, providing increased clarity for future costs.
Specialized knowledge and expertise are value adds that help resolve common problems in large organizations where the knowledge is likely lacking in the end user resource pool."
situation nine
Owner of a multi-site chiropractic and sports clinic required assistance in QuickBooks setup and process optimization.
action
We quickly learned business needs requirement, included high value expense categories to implement new company setup and drive ongoing attention to key factors. Discussed internal processes with owner and the created a SWOT analysis for the client. We worked with owner on decision making in regards to hiring staff to handle admin roles while owner focused on customer care.
result
Reduced administrative time by an estimated 12% and delivered information for decision making around accounting and business performance management.
It is important to realize strengthens and weaknesses in business management. Hiring the right staff or out sourcing the activities are essential to aligning owner skill set with the right activities."
situation ten
Owner and publisher of leading custom cake magazine required assistance with excessive cost structure and realignment of revenue streams to improve profitability and cash flow. An additional needed was around helping the owner to jettison unprofitable business line.
action
We conducted a SWOT analysis to determine next steps for dealing with cost structure and pricing and then identified the value of the unrelated business line to be sold. We identified new revenue opportunities and opportunities to save money. We evaluated the overhead expenses to make conclusions about what was necessary to run the business and determine required resources to grow.
result
We identified that replacing two low level admin roles with one office manager saved $10K / year and more importantly brought in a more qualified resource to handle multiple office needs—they really needed a strong office manager. We also helped to set a sale price for the business line that they were getting rid of.
Small savings add up over time. Sometimes spending more can actually lead to improved overall business performance through process improvement and/or due to expertise that helps shape a stronger and more effective business management process."