FOUNDATION
  • Accounting Systems
  • Cash Flow Processes
  • Advisor Coordination
HEALTH
  • Budgeting & Forecasting
  • Production & Operations
  • Banking & Capital
GROWTH
  • Strategic Financial Planning
  • Risk Assessments
  • Revenue
  • Operating Rhythm
VALUE
  • Succession or Exit Planning
  • Readiness & Attractiveness
  • Price/Multiple
Summit Insights
Aug, 22

Ameriseal of Ohio Case Study

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The Challenge

Due to the death of a co-partner, the client was now responsible for all areas of the business and recognized that he needed a greater understanding of cashflow and key performance indicators. The accounting and cash management systems were antiquated, inadequate and tribal. 

The business included a manufacturing component, and a seasonal application and installation project component, and due to requirements of selling to FAA funded projects required an annual audit. Books were not closed in a timely manner making it challenging to prepare job costs and provide information required for the audit. 

With rapid growth it was unclear if the existing line-of-credit would support the highly seasonal installation projects. 

The Solution

Initially, FocusCFO was on-site one day per week and conducted the following:

  1. Analyzed, confirmed and revised actual costs of product and installation.
  2. Completely revamped the estimating and quoting system.
  3. Developed a reliable project accounting and costing system so that the Client knew profit as a project proceeded.
  4. Created systems to allow for effective budget vs. actual project management.
  5. Created detailed revenue-cost matching model.
  6. Found, facilitated hiring of and guided work of P/T accounting resource.
  7. Systematized repeatable business processes.

The Outcome

  • With greater command of financials, the client was able to provide information to bank to justify a 100% increase in line of credit.
  • With improved cash management models, the company navigated all Covid-19 hurdles and took advantage of PPP 1 and 2 loans, and Employee Retention Tax Credit.
  • Books were closed in a timely manner, allowing CPA firm to conduct annual audits.
    Improved project management systems provided for project-level tracking of costs and profitability.
  • With these increased business processes in place, FocusCFO was able to reduce on-site CFO needs by 50%.
  • Most importantly, owner and employees can have improved work/life balance.

By the Numbers

  • Increased line-of-credit by 100% 
  • Monthly closing time decreased from 6 weeks to 8 days 
  • Project costing now on demand 
  • Project vs Budget available within 2 weeks of project completion