Company Background and Summary
The company primarily provides a full stack service in website design. They provide three types of services: interactive, software development and information technology. Most clients that use their service see significant increases of website traffic, especially during the holiday season.
Based in New York City, the company is composed of a team of 30 employees and 3 partners, a director of finance, operations and sales.
MBS engaged with this company in 2011. At the time, the company was experiencing consistent growth, but was not getting the financial information needed to assist in some key business decisions that were going to be made in the near future. The company had a few year’s worth of data in QuickBooks desktop, but we immediately discovered the books were in terrible shape. Among other things, the balance sheet items were completely off and there were reconciliation discrepancies with all the financial assets.
For a company to do something as standard as applying for a business loan, current and accurate financials were necessary. For this company to continue to grow, we were tasked to clean up the books for the prior year and better organize the chart of accounts already in place. After our cleanup, we were able to provide the client with reliable reports for any purpose, whether it be for a business loan or potential acquisition.
Current Company Summary and Outcome based on MBS’ Approach
Today, we are providing the client with reports updated on a weekly basis. We have also started to provide the client with weekly dashboards that provide visual data for four aspects of their business: payroll, accounts receivable, accounts payable, and uncleared transactions. These dashboards have helped the client be able to peek into the future of the company and plan accordingly. As we continue to understand the client’s needs, we continue to provide new information in visually friendly ways.
The company is now also getting consistent gross profit reports by department. This is detail the client was not receiving until engaging with MBS. Every quarter, we provide the partners with gross profit percentages by department. With this information, they have been able to better plan for the remainder of the year and years into the future. They are able to give the department managers this detail to either keep up the good work or change some processes to improve the bottom number. After a few years of having this detail, they are able to provide the managers with goals and incentive programs that have shown to, year after year, show promising growth for the company.