Client Profile
A local business looks to grow after being neglected by a legacy firm.
A retail nursery and landscape design business (the client) faced challenges expanding its operations to include on-site outdoor living services.
To compound the problem, the client’s long-time certified public accountant (CPA) had been unresponsive to the client’s requests for guidance on matters critical to their leadership’s understanding of their financial health and obstacles to growth: tax planning, reliable financial statements, financial leadership, and basic tax filing responsibilities.
Objective
Build the client into a growth-stage retail and landscaping services business.
In late 2023, the client sat down with Jeremy and department heads for a strategy meeting. At first, the client was looking for a firm to replace their former CPA. But as the meeting progressed, the client’s leadership team moved into conversations about expansion, diversification, and growth.
By the end of the conversation, both parties agreed that a comprehensive overhaul of the client's accounting and bookkeeping, tax planning strategy, and capacity for financial forecasting and insights was necessary to move from a local nursery to a regional player in retail and outdoor living services. That's where the case study begins.
Step #1: Modernize accounting and bookkeeping practices and systems.
The client's internal controls were in a state of disarray. This was not the fault of their leadership. It was the fault of the legacy firm that simply did not understand the operational and financial value of centralizing and organizing accounting functions with a single, intuitive software.
Our team immediately started the process of transitioning accounting information from the client's current desktop software to QuickBooks® Online. Now, our team had complete, real-time access to the client's books.
Within two weeks, we had restructured their accounting systems, trained their internal teams on better practices, and properly categorized all entries—these steps would allow for instantaneous adjustment and support throughout our relationship and would lay the groundwork for improved tax planning and financial leadership in the future.
Accounting actions that resulted in immediate ROI.
- Invoicing tools implemented through QuickBooks® Online produced immediate effects: accurate and timely billing, more reliable cash flow, and an increase in customer satisfaction.
- Sales workflow automation involved integrating Clover, a third-party software, with QuickBooks® Online for automatic generation of point-of-sale data and a 100% reduction in manual errors.
- Payroll management optimization shifted all payroll functions from outdated software to ADP®, and our team provided training on SOPs that ensured compliance with regulations, faster payment processing for employees, and a refined system for employee records.
Structural accounting improvements that delivered positive impacts across the organization.
- Improved financial tracking across departments was achieved by tapping into our team’s experience with advanced software features and accounting expertise. The result was stronger internal reporting and the beginning of higher-level information for the client’s leadership team.
- A break-even analysis set a clear target for monthly sales goals and provided a starting point for the client and our team to accelerate growth.
- Reliable tax filing schedules reduced the financial anxiety affecting the client’s leadership and put a lock on tax filing and compliance issues.
Step #2: Leverage improvements to produce useful data for strategic financial planning.
Businesses that have clean data and essential processes squared away are ready to start using the data and processes to explore how decisions made in the present may impact the future. Accurate financial reporting was key to visibility and planning.
- Monthly financial reports exposed opportunities to improve cash flow management and business performance.
- Ongoing financial leadership provided additional assurance that operational decision-making was aligned with financial goals and targets.
- Continued QuickBooks® Online support, including account maintenance, invoicing, and bill payments, ensured smooth day-to-day operations.
Step #3: Implement strategic tax planning with a focus on assets and tax structure.
Tax planning and entity structure are closely linked. For the client, we took full advantage of all deductions and credits, but those items are just the beginning of high-level strategic tax planning.
- C-Corp selection in October 2024 pivoted the client to a tax structure optimized for growth and consistent with its leadership’s long-term goals.
- Clear advice on withdrawal classifications (bonus vs. dividend) minimized double taxation risks in the C-Corp structure.
The client asked for an accounting, tax, and financial partner, and we delivered.
- Revisiting the classification of new property under the client’s ownership saved thousands in capital gains taxes by avoiding the classification of loan payments as taxable distributions.
- Regular touchpoints and strategic consultations helped maintain proactive tax planning throughout the fiscal year.
- A review of filings and entity status resulted in a substantial reduction of the client’s franchise tax liability.
Results
Since 2023, the client has seen accounting, operations, finance, and human resources departments scale in a sustainable manner. Expenses and costs have fallen, revenue has increased, and access to liquidity has expanded.
Here is a summary of the results so far:
- A leadership team with a clear view of current performance and ongoing financial data and insights that help them make better decisions.
- Dramatically lowered its exposure to compliance pitfalls with timely and accurate quarterly filings and automated accounting workflows supervised by our accounting manager.
- Cut payroll costs associated with managing outmoded accounting and bookkeeping tools.
- Scaled its operations and laid a foundation for future growth by pivoting to a more advantageous tax structure.
From the Client
"Your remarkable talent as an accountant has been nothing short of transformative. With your keen expertise, unwavering dedication, and meticulous attention to detail, you’ve streamlined our financial processes, ensured seamless compliance, reduced our tax burden SO much, and provided invaluable insights that have strengthened our decision-making and propelled our success. Your work is now the backbone of our financial stability."
