Introduction

‍A prominent real estate developer, poised to manage two major projects with a combined budget of $70M, faced a critical bottleneck in setting up an efficient accounting system. With their projects ready to kick off, the need for a robust financial strategy was urgent.

Challenges

‍The developer's primary challenge was the absence of an in-house accounting team capable of managing the complex financial aspects of large-scale developments. They also faced the issue of scalability and sustainability of the accounting team post-project completion.

Solution Implemented

‍RedHammer provided a comprehensive accounting solution tailored to the unique needs of real estate development:

• Outsourced Accounting Services: Took over all accounting functions, ensuring professional management of financial systems.
• Implementation of Timberline: Deployed this construction accounting software to meticulously track costs, budgets, contracts, and change orders.
• Paperless Accounts Payable (AP) System: Introduced a streamlined, paperless AP approval system to enhance operational efficiency.

Results

‍The implementation of these solutions brought immediate and impactful results:

• Efficiency in Operations: Elimination of training and ramp-up time for accounting staff, as RedHammer's team was already proficient in the necessary processes.
• Enhanced Financial Oversight: Regular financial reports, including monthly comparative income statements and weekly updates, provided clear insights into budget management and cost control.
• Cost Savings: Projected savings of approximately $140,000 over the duration of the projects, underscoring the financial efficacy of the outsourced model.

Conclusion

‍This case study demonstrates the effectiveness of RedHammer’s turnkey accounting solutions in managing and optimizing the financial operations of real estate development projects, ensuring profitability and operational excellence.

Call to Action

‍Are you ready to enhance the financial management of your development projects? Contact RedHammer today to discover how our customized accounting solutions can contribute to your project's success.

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