Signature Analytics was engaged by a rapidly growing San Diego brewery which, at the time, did not have an internal accounting function. The brewery’s management team spent the majority of their time on the operations of the business, so it was not possible to make maintaining proper account records a priority; however, they recognized that it was critical to have accurate financial information to make proper business decisions. So they reached out to Signature Analytics to provide outsourced accounting services.Start the Conversation
Within a one month period, the Signature Analytics team was able to update all of the accounting records for the previous months which had been neglected. Our accounting team also set up a monthly close process which included proper reconciliation of all bank and balance sheet accounts, the implementation of a system to track inventory, and ensured proper Generally Accepted Accounting Principles (GAAP) and accrual basis of accounting. Additionally, we established monthly meetings with brewery management to review historical performance and discuss future activity and projections. Communications with the Brewery’s management were ongoing and imperative, allowing the engagement to maintain flexibility and drive effectiveness.
While these procedures were exactly what the management team expected of Signature Analytics, we knew there was more that we could do to assist with the most crucial business decisions. During the month that the accounting information was updated and while we learned about the business, the Signature Analytics team noted that more focus should be placed on the gross profit margins of the brewery’s products. Once the data was properly structured and accurate, a seasoned CFO put together a custom margin analysis and was able to identify several opportunities for improvement. The insights from this analysis enabled the Brewery to properly evaluate profits and increase margins.
In addition to getting the Brewery’s accounting records in order and providing a custom margin analysis, the Signature Analytics team prepared a 13-week cash flow forecast to assist with cash management and the payment of bills. This analysis helped the management team better understand each of the inflows and outflows the Brewery experienced and identify areas where they could improve the business financially.
Although we were initially engaged to only provide monthly accounting maintenance and bookkeeping services, the Brewery’s management team quickly recognized the value of Signature Analytics’ proactive approach to outsourced accounting services. Having a full accounting team on an as-needed basis was a perfect fit for the Brewery’s needs and the additional financial analysis and reports we provided allowed the Management team to get a better understanding of their business. This enabled them to confidently make business decisions based on the accurate financial information they were provided, ultimately improving profitability for the Brewery.Talk to An Expert
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