CONTROL, CLARITY, CASH: FROM $1M IN LOSSES TO $3M IN PROFIT IN ONE YEAR

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Background

A $30+ million supplier of equipment and support services to community and mid-sized banks, the company had a strong customer base and steady sales growth but was struggling to translate that success into profitability and sustainable cash flow.


Despite increasing sales, the company was showing losses and facing a critical line of credit renewal. Slow and often inaccurate financial reporting left leadership feeling like they were running the business in the dark.

Solutions

Through our discovery process, we identified and implemented the following strategies:

 

  • Introduced purchase controls and KPI tracking for inventory and labor efficiency.
  • Established gross profit benchmarks for all new sales proposals.
  • Placed a fractional CFO and controller to oversee monthly financials and KPI performance.

Conclusion

By bringing visibility, accountability, and structure to operations, this company transformed its financial position—turning cash flow strain into sustainable profitability.

Solutions

Challenges

  • Inefficient internal reporting and lack of timely data

 

  • Poor inventory controls tying up cash

 

  • Sales discounts eroding margins

 

  • Labor inefficiencies across divisions

 

Benefits

  • Went from ($1M) in losses to $3M in profit within one year
  • Achieved turnaround with only a 10% increase in sales
  • Secured critical bank financing through improved cash flow and reporting discipline

 

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Our passion lies in partnering with growth-oriented, private, closely held businesses that are frustrated by being stagnant and are ready for lasting change in their businesses and their lives.

BGW is the brand name under which BGW CPA Co, LLP and BGW Advisors, LLC provide professional services. BGW CPA Co, LLP and BGW Advisors, LLC practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. BGW CPA Co, LLP is a licensed independent CPA firm that provides attest services to its clients. BGW Advisors, LLC and its subsidiary entities, which are not licensed CPA firms, provide tax, advisory, and other non-attest services to its clients. The entities falling under the BGW brand are independently owned and are not liable for the services provided by any other entity providing the services under the BGW brand. Our use of the terms "our firm" and "we" and "us" and terms of similar import, denote the alternative practice structure conducted by BGW CPA Co, LLP and BGW Advisors, LLC.

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