Case Studies-Videos

TRANSPORTATION COMPANY (LONG HAUL). - This company with 80 drivers and 50 owner operators had been in operation for 15 years and got to the point of heavy indebtedness and negative cash flow. They had large administrative infrastructure and desperately needed a solution to keep company afloat, to pay off creditors, and to sustain the current accounts. The owner acknowledged that they needed the expertise to figure out—the money leakage they were suffering and to evaluate and provide for new clients. They could not make the payments to all their creditors and in addition had a mountain of un-paid 941 taxes they had failed to cover to the IRS. They immediately wanted the Chief Financial Officer Module. Through this module, the company was able to gracefully satisfy the IRS demands and the urgent need of their financing banks to take them out of their portfolios. After three years of handling the situation and keeping the business afloat – the owner and CFO counsel concluded that the best alternative was to sell assets, and transfer accounts to other carriers. Although you may think that this was going to happen any ways, the difference here is that the owner had professional representation and accurate information to negotiate with creditors, the IRS and severance packages to management and employees. Unfortunately, when you have run your operation for too long without doing checks and balances, the distressed situation is at such point that the best thing to do—is to take this company to cease in a graceful manner—causing the least damage to its owners and to its employees.

CABLE AND FIRE ALARMS INSTALLATION COMPANY - This business had been in operation for 2 years before they came to us—they are owned by a shrewd entrepreneur and as an owner he recognized that in order for him to take his company to the next level, he needed professional bookkeeping and financial management. We took the company in 2010 and first of all had to fix all the past two years (2008 and 2009). Company had not presented correct corporate tax returns for the past two years and showed little equity. Issue was that their chart of accounts was not correctly set up, their costing model was not standardized and the purchasing of their row materials was not optimized – it was not an easy task for the owner and his crew at that time (14 people) to do all of the production operational side, and also focus on the bookkeeping and financial side, which was not their area of expertise. They hired the full turnkey administrative and financial management package, even to the point of allowing Southwest Business Solutions to control their bank accounts—now they are strongly positioned to take advantage of all opportunities being laid before them and can do this at a fraction of what it was costing them—in ($)dollar value and not to mention the incalculable savings in intangible value: such as time invested in the administrative and financial side that should be invested in getting more clients or supervising the jobs better, and of course anxiety of knowing that their information and their profitability was not where they want it to be. This company is still in the turnkey program, they love it, and we enjoy as well, seeing how they grow day by day—with a steady and firm pace.