A Financial Makeover Resulting in a Five-Figure Tax Liability Reduction

Service Process Improvement & Efficiency
Industry Heavy Equipment
Company A fast-growing dealership selling environmental equipment to municipalities and contractors.
Situation The company’s quick growth had ownership focusing on the day-to-day running of the company with little time left over to create and install management processes.
Goal Multiple:

  • Streamline accounting processes and recommend changes to improve financial reports.
  • Analyze and fix inventory check-in and billing processes that were major pain points between departments.
  • Develop and implement the company’s first employee policy handbook.
Approach The accounting system was cleansed of duplicate accounts and improper transaction. Existing management reports were simplified and new ones were created. An annual budget and five year forecast were produced.

The inventory project was completed concurrently. Key employees were interviewed and process maps were created which clarified the targeted processes and the interaction between departments. New procedures were installed which fixed the pain points. A physical inventory count was taken.

Two non-competing dealership handbooks were benchmarked and an employment attorney was retained to review and create policies.
Results The outcomes were numerous:

  • A restatement of a tax year with a five-figure reduction in tax liability for the owners.
  • A 10% error rate reduction in inventory.
  • A 15% reduction in time to ship parts.
  • The policy booked was completed on time and employees trained.