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Accounting Case Study
Temporary Staffing
Agency - When Growth Is A Problem
Challenge:
This start up business suffered from an unlikely foe—success. Often
when a business grows too fast they can suffer from unexpected
forces. This company’s unexpected foe was profits with a lack of
cash.
Without a set of quality financial reports that included a detailed
analysis of their growth and the resulting cash flow, this
successful firm was unable to acquire the necessary lending
resources needed to fund the growth.
This firm came to us originally seeking financial accounting
services, but we possessed the business experience and resources to
provide business consulting and financing alternatives as well.
Solution:
After setting up systematic financial controls and helping this firm
produce useful financial reports the firm was able to secure a line
of credit sufficient to fuel its substantial growth. The reports
continue to be a vital management tool that the owners refer to on a
regular basis. The report allows the owners to anticipate cash
crunches months ahead of time.
Result:
Can effective accounting practices play a role in a firm’s growth?
That’s part of Cornerstone’s total solution accounting approach.
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