$5M Health and Fitness Franchise

Client Goals:
Replace outsourced accounting firm with reliable, responsive provider whose high caliber professionals would support the CEO’s turnaround efforts during a financial crisis.
Pain Points:
The company was struggling from cash flow issues and its CEO did not trust their existing outsourced accounting provider due to:

• Failure to provide timely responses
• Inability to prepare audit-ready financial statements
• Lack of proper controls and safeguards over cash, resulting in frequent duplicate and erroneous payments

ALC’s Solutions:
The CEO knew ALC through the business community. ALC quickly implemented the following solutions:

• Cloud-based accounting system allowing for transparency and real-time access for the CEO for efficient decision making, which was especially important during the COVID-19 Pandemic.
• Increased internal controls, policies and procedures and safeguards over cash and accounts payable, which:
  • Eliminated duplicate payments, including employee reimbursements of up to $3,000 /person
  • Eliminated overpayments by requiring itemized receipts
  • Facilitated cash flow forecasting and planning and management
• New ASC 606 Revenue Recognition Rules specific to the industry, which facilitated delivery of timely audited financials by outside CPA firm
• During the Pandemic, quickly applied for a loan under the SBA’s Payment Protection Program (PPP), which was funded within 30 days

Client Benefits:
ALC has helped the company through the trials of a restructuring and the COVID 19 Pandemic by providing:

• Accurate, timely and reliable monthly financial statements that are used by the CEO to make crucial business decisions with confidence
• Increased ability to manage cash flow contributed to the company’s ability to survive the pandemic while many competitors folded and filed bankruptcy
• Audit-ready financial statements resulting in annual savings of CPA Audit fees by $40,000 / year
• Thousands of dollars in savings from eliminating duplicate and erroneous payments to vendors and service providers

“ALC is lightyears better than our prior accounting provider. Thank you for helping me sleep better at night.” – CEO