Case Studies

Outsourced Accounting

Turnkey Accounting Solution For Developers

 by 
Neil Tagawa
 - 
Partner
Published On 
July 8, 2020

Summary

This real estate developer had the right project managers and construction managers in place to handle the rigors of a large scale development.  When they landed develop two projects totaling $70M in construction costs, they were faced with the challenge of hiring and training an accounting staff and to implement a financial system.  As the design work was completed and all the permits were in place, they were still struggling to put the right pieces in place for their accounting.  They also came to the realization that after getting the accounting set up, they were going to have to figure out what to do with the staff when the projects were scheduled to complete in two years.

 Solution

  • Outsource all accounting functions to RedHammer.
  • Implementation of Timberline to track all costs, budgets, contracts and change orders.
  • Implementation of paperless AP approval system.

 Results

  • The RedHammer staff knew all the processes, and training and ramp up time was virtually eliminated.
  • Monthly comparative income statements to show the actual costs and budgets available from the start.
  • Weekly update reports were provided, and monthly management reports were reviewed with executive staff.
  • Paperless approval system streamlined operations and provided the transparency to carefully monitor costs.
  • Projected cost savings of $140,000 over the project duration.

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