Understanding
Case Study : Staffing agency
Business Challenge:
Fast-paced business was faced with a real panic situation. The financial manager and only accountant on staff had suddenly quit and left the books in disarray. Payroll was due out, billings were scheduled to be sent, bills were backed up, and no one internally knew how to begin pulling everything together – or even how much money was in the bank account. To top it off, the business was losing money for the third year in a row.
The company had no controls in place to ensure that accounting practices were according to standard, there was no cross training of staff, and the owners did not have the tools in place to appropriately price their services.
Solution:
CD Anderson revamped the financial reporting and accounting systems, set up accounting procedures and controls to ensure proper accounting was used, and provided cross training to the administrative staff. In addition, we created pricing models for each area of the business.
Result:
In the short term, we pulled everything together to get payroll out, bills paid, invoicing sent – and we provided an accurate cash balance within one week.
Once the immediate emergency passed, we helped the company hire a new accountant and provided training and support on a continued basis, and implemented a checks and balances systems to ensure all accounting systems were in place and understood by the staff and owners.
Within six months, this client went from a negative profit margin to a seventeen percent profit. After nine months, this company was able to secure financing to grow the business and diversify its market while competitors were closing their doors. Today this owner has three successful businesses – all of which are making a profit.
Read more case studies about how CD Anderson can help your business be a success.
|
