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  • Stephanie Long

Using Financial Forecasts to Drive Growth and Profitability


Client

Nicole and John McGee started Busy Bee’s Cleaning Service five years ago. The business services homes, offices, schools and corporate clients.


Problem

While Busy Bee is a terrific business with strong revenue, it could not turn a profit. After deciding to end a large labor hire contract and losing more than 60 team members, Nicole and John were unsure how the business was going to survive and were desperate for professional advice.


Solution

Nicole and John contacted their Accounting Team. They needed urgent advice and help to update their business plan and financial forecasting. Fortunately, the bookkeeper they’d hired had kept their financial records accurate and up-to-date. Using these numbers, the Accounting Team assisted them to reassess their business mission and value proposition, generate accurate financial models for the business, and advise on business growth strategies.


Benefits to the Client

“Initially, I was concerned that the sessions would only show how bad our situation was, but I was pleasantly surprised. In fact, having the models informed us about different options we had and has become a valuable tool for the future of our business,” said Nicole.

Nicole and John now operate with confidence knowing how profitable each job is. They had to increase their charge-out rate but now have a clear understanding of the profit margins on each job they undertake. Their newfound confidence shows in their sales pitch and conversations with customers and ensures that they are in control of their business.


Conclusion

Sometimes, businesses need to pivot. These pivots may be a proactive part of the business’s growth strategy, or they may come as the result of an unexpected change. Change is inevitable. Having accurate, up-to-date books is an essential element to making a successful pivot, whether planned or unplanned. To make sure you’re prepared for your business’s next pivot, ask for expert advice and make sure your books are giving you the best possible information for cash flow, tax planning, and keeping the IRS happy, should you be selected for an audit.


To speak with one of our bookkeeping, tax planning, or business strategy consultants, please contact us at info@longlg.com.


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