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.
Initially, FocusCFO was on-site one day per week and conducted the following:
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 are able to have improved work/life balance.
By the Numbers