Ameriseal of Ohio
Case Study
Client interview with James Peters
This has worked out as well as you can ever expect anything to work out. I’m very pleased.
James Peters | CEO
Ameriseal of Ohio
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:
- Analyzed, confirmed and revised actual costs of product and installation.
- Completely revamped the estimating and quoting system.
- Developed a reliable project accounting and costing system so that the Client knew profit as a project proceeded.
- Created systems to allow for effective budget vs. actual project management.
- Created detailed revenue-cost matching model.
- Found, facilitated hiring of and guided work of P/T accounting resource.
- 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 are able to 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
Founded in 2001, FocusCFO is a leading fractional CFO services provider, with over 120 CFOs and Area Presidents throughout the Midwest and South.
FocusCFO® works closely with small to medium sized businesses, helping business owners increase cash flow, reduce business risk, and create a platform for scalable growth. FocusCFO provides CFO Services on a fractional basis, meaning clients get all the advantages of a full-time, highly experienced CFO under terms that are flexible, affordable and within each client’s budget.
For more information, visit www.focuscfo.com or follow us on LinkedIn.