Each of our clients is unique, requiring a personalized touch in order to effectively steer their business back on course.
Client is a service company supporting the commercial and residential construction industry. The company requires heavy equipment to perform its service, and the cost of the equipment is very expensive relative to the size of the company.
When we were engaged by this client initially, the services requested were just the annual tax return; however, two years into the relationship, the client was struggling to meet its debt service in the face of a challenging industry. Our team immediately went to work analyzing the situation and determined the path back to profitability. Our staff worked tirelessly with the owners to develop a new strategy and to recapitalize the company through a complete refinancing of its equipment.
As a result, the company was able to save $30,000 per month in debt service and, with other initiatives we recommended, turned the company around in just 12 months. Since that time, over 6 years ago, the client has never looked back. Their profitability has increased each year, and most importantly, so has their cash flow.
The client is a shipyard repair company. Prior to hiring our firm, the client was utilizing a local bookkeeping service for its accounting department, and the financial statements and tax returns prepared by them were unreliable due to poor accounting processes and controls.
The ownership sought out our firm through referrals, and we were engaged to correct all the errors and get to a point where the financial statements could not only be relied on as accurate, but were a real tool in managing the business. The first step was to take the accounting in-house, and our team assisted in hiring the staff and implementing the accounting software. We trained the staff on how to use the software efficiently and began the process of examining the financial situation more closely. Through our detailed investigations, many errors were uncovered, and the errors ranged from duplicate payments to vendors to a lack of collection of receivables. Unfortunately, the client was losing money for quite some time and had no idea, and the result was a major restatement of the financial statements. At that point, our work was only just beginning.
Through our team's efforts, the client was able to significantly reduce overhead and improve the A/R collections to just over 30 days on average, but most importantly, after only 6 months of work, the company became profitable again! Since that time, the company has had over 60 straight months of continued profitability.