Getting Your Numbers Right: A Case Study In Bookkeeping

Get The Case Study Of The Bookkeeping Solution  

Our Journey Began With:

The owner found us through a referral. She, like many other business owners, was stressed up about money. She is a creative genius, but the business side of things was kicking her in the nuts.

During our examination, we found a number of areas where we could benefit from assistance with the "business of business," but we started with bookkeeping and accounting. Our bookkeeping business assessment entails going over three months  worth of financial records in order to estimate the scope and expenses of providing bookkeeping assistance. It also entails deciding who will be in charge of what.

As a Result, We Did the Following:

Starting with basic bookkeeping services, we decided the scope would be as follows:

1. Property categorizes transactions on a weekly basis
2. Payables management
3. Reconcile monthly credit card and bank accounts
4. The client would continue to do invoicing since she likes to "tinker/adjust"
5. Address discrepancies or bank errors

We have added these over time as she gained confidence and trust in our team:

1. Providing her with a monthly dashboard of reports so she could begin to understand what the numbers mean to the rest of her company
2. Integrating her time tracking system with QBO to review profitability of projects
3. We do most of the invoices, she reviews, we send, and we assist with collection calls as needed
4. We have also set up a separate account where money is transferred regularly for tax payments to reduce the cash flow impact
5. Through our business consulting, we went from occasional to regular monthly calls, allowing her to:
   1. Proactively manage your finances
   2. Analyze profitability and cash flow
   3. Be aware of your ideal client - bigger isn't always better
   4. From high touch, low profit clients to low touch, high profit clients and projects
   5. From project-based work to retainer-based work
   6. Identify the best staffing models

The Solution We Offer

Step 1: We provided them with a cash flow presentation based on their past bookkeeping.

Step 2: Explain to them where they are lacking from a budget perspective

How to reduce expenses

1. Replacement of old machines
2. Machine depreciation
3. Evaluation of labor costs
4. Management of taxes

Here Are the Results:

There is no stopping them now - they are taking a huge amount from the company. They have identified their sweet spot, with the majority of their income coming from retainer projects rather than one-off projects. There are more vacations, a new kitchen, and a smaller staff than ever before.