Case Studies

Outsourced Accounting

Staff Is Unable to Support Financial Software

 by 
Alexis Lamkin
 - 
Manager
Published On 
June 23, 2019

Summary

Since starting their business out of their garage, they became a huge success story for the 8(a) Business Development Program.  They ran their field operations efficiently and annual revenues quickly rose to $30M.  To deal with the growth they purchased Sage 300Timberline software.  Unfortunately, the staff was not able to manage the system.  After years of trying, financials were only being generated out of Excel, and the accuracy was definitely in question.
 
The powerful software was not being used properly and accounting was extremely inefficient.  Additional staff was hired as a band aid solution, but the information flow was now starting to hinder the field.  For the first time in the company’s history, they were taking losses on jobs.  Project managers and foremen were not getting job cost information, and what information they did receive was out of date and they had no confidence in the numbers.  After meeting with RedHammer, they knew what needed to be done.

Solution

  • Thorough clean-up of accounting data
  • Reconfigured Timberline so that all postings were done and departments could share information
  • Implementation of weekly job cost meetings
  • Formal job close out meeting to provide feedback to the estimating department
  • Reorganization of accounting resources

Results

  • Financial reports generated on a timely basis, out of Timberline
  • Job cost information provided insight to some large issues with estimating and execution in the field
  • Streamlined communication between departments
  • 39% reduction in accounting related overhead costs

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