Case Studies

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%

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.

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.

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

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