Case Studies



Tight Cash Flow
Situation
Subcontractor with a seasonal business model doing about 3M of revenue
Struggled with cash flow, forced to use Line of Credit to meet payroll during ramp-up
Owner was not getting timely information to monitor performance of entire company

Solution
Created custom reports including dashboard to monitor performance and cash forecasts to predict shortfalls and surpluses
Helped client understand cash flow cycle and how to avoid the cash “crunch”

Results
Shortened A/R collection period by 8.7 days
Revenue growth of 37.1% in 2012, net income increased by 149%
2 yr. average Return on Investment for client of 1,125%



Commissioned Sales People
Situation

Owner struggled to track commissions earned vs. paid
Sales team was frustrated due to wide variations in cash flow from one pay period to next
Bookkeeper had to reconcile accounts and correct discrepancies causing distrust between sales force and office staff

Solution
Transitioned all commissioned employees to bi-weekly draw with quarterly bonuses to smooth cash flows and simplify payroll reporting;
Created one custom report for office manager, owner, and sales force to review and track performance;
Eliminated non-value adding administrative tasks.

Results
Increased overall efficiency by 4 man-hours per week.
Enhanced clarity and comprehension for all parties
Minimized administrative workload.



Forensic Accounting
Situation
Regional bank noticed a precipitous decline in borrower financial condition over 5 quarters
Members of borrower’s management team formed a new entity and offered to buy assets from borrower/bank
Bank hired Lucrum to investigate borrower financial records for fraud, deception or malfeasance

Solution
Analyzed all available information and provided bank with a list of questions for borrower
Participated in discussions with borrower and bank representatives

Results
Documented findings in a memo to bank management listing areas for further investigation as well as missed opportunities by bank to prevent the situation
Saved bank two days of analysis
Bank later resold assets at a substantial increase to the price originally offered.

 

Time Consuming Bookkeeping
Situation
Owner doing bookkeeping work for real estate investment firm
Required 6-8 hours of owner time each week
Significant delays in preparing tax returns and sharing financial reports with investors

Solution
Client outsourced entire accounting department to Lucrum Consulting
Standardized chart of accounts across all companies simplifies coding of expenses.
Client has specific, strategic involvement only to provide complete control and financial security yet require minimal time

Results
Owner has additional half day of productivity each week
Greater efficiencies reduced cost to client by 31.5% within 90 days
Accounting function now requires less than 4 hrs week



Accounting System Selection
Situation
Large HVAC contractor struggling with antiquated accounting system run on UNIX server
Could not export to Excel, create .pdf documents or generate customized reports
Difficulty finding qualified candidates or extensive training required for new-hires due to near-proprietary system
Field technicians had to phone in credit card payments and handwrite work orders/receipts

Solution
Recommended client convert accounting, dispatch, and job ticketing system to Windows-based solution
Coordinated install of new software, pre-training and on site education
Add-on to Windows software package allows technicians to handle payments from customer via iPad minis

Results
Windows based software solution simplified hiring process and increased employee retention
Creative financing solution spread payments over 3 year term, matching cost with benefits
Tracking profitability by department allows management to better track results
25% anticipated increase in same-day customer payments; 200K less A/R over 1 year