Though the firm boasted an impressive index of profitable interactions with clients, their financials were maintained on a cash basis, creating a discrepancy in the timing of transactions and subsequently, preventing the company from obtaining an accurate numerical representation of monthly revenue and expenses. Through converting their practices to an accrual method, and therefore aligning the firm with Generally Accepted Accounting Practices (GAAP), we were able to set up new financial close measures on a monthly basis to provide more accurate reporting.
Furthermore, the firm had no procedure in place for tracking the performance of individual projects, let alone total accrual on a periodic basis. Working with the firm’s managing directors, Company Launch Partners developed a customized revenue and margin model that allows the business to analyze variances on a project-by-project basis, as well as forecast future differences in profit and alter company strategies accordingly. With an organized framework depicting gross margin percentage now in place, the firm can make precise, informed adjustments to staffing needs in order to concentrate effort on obtaining profitable results.