Company Background and Summary
The company is a paint and wine bar with locations throughout NY, CT, MA, MD, ME, and VA. The company was founded in 2012 and offers experiences that combine painting instructions with a bar and restaurant.
Aside from selling its services of hosting painting sessions and private parties, the company holds a small amount of inventory for alcoholic beverages and foods.
With its rapid growth in numerous locations, the company has continued to support their local communities by donating a percent of its profits to local causes and fundraisers.
The company came to MBS ATA for assistance with their financials after their latest hired accountant decided that the position was not suited for them.
Because the accounting was being done by a combination of the previous accountant as well as the business owner, the challenge of trying to differentiate between accounting methods utilized on the file, was difficult. Additionally, the company was under constant pressure for accurate financials to report to their investors and banks. And the requirement of building income and balance sheet statements for multiple locations only made things more difficult.
We commenced by analyzing the current state of the financials the client presented to us. Their existing procedures and booking of transactions were the first to be reviewed. There was a rough start because we were faced with a large amount of transactions and information that needed to be absorbed and categorized across 25 locations. Although we had a ton of information that was provided by the client, we had to find a way to extract the relevant information needed and find shortcuts to improve efficiencies. It took a team of roughly three people to be able to take on this project which consisted of one manager and two associates.
Current Company Summary and Outcome of MBS’ Approach
The business started off with 15 locations when they first engaged with MBS ATA. Over a span of about 1.5 years the client has grown to 25 locations with additional upcoming locations.
MBS ATA has recently been able to come up with monthly processes that allow for both the client’s and MBS’ team to work together in doing their parts to help build accurate monthly financials. With the use of technology, we were able to streamline numerous processes, thus getting rid of a lot of manual work. If we were to measure the current percentage of manual work on the client’s file, conservatively about 10% of the work is yet to be interrupted by technology. MBS’ team, however, continuously improves their approach to the client’s file by applying innovative and technological initiatives to make the file 100% automated. Once there, MBS will then be allowed more time to spend on CFO-level analytics and support
The largest benefit of these process improvements allows us to see the state of the file at all times which also results in weekly and monthly updates of financial statements for the client. It allows both parties to engage in the build of financial statements that are used for management, investment, and banking purposes.