FINANCE PERFORMANCE MANAGEMENT/ FINANCIAL TRANSFORMATION/TREASURY SOLUTIONS

$2 Million Web-page Content Writing Business

12|21 Financial Consulting Group led the change in accounting method from “cash-basis” to “accrual-basis” for both book and tax purposes. This included the re-organization of the balance sheet and income state, as well as developing company-wide procedures, to capture three-categories of project data for an on-going work-in-process schedule, that allows the company to book revenue by specific project, as it should be recognized monthly according to GAAP. This work allowed the company to now monitor, measure and plan strategically; unlike before when the company had no strategic tools with which to measure and plan because its expenses and revenues were not matching and margins were not monitored. Included with this charge, 12|21 FCG interviewed various CPA firms, choosing the proper one that could file the complex 3115 “application for change in accounting method” forms to the IRS and the ability to perform the analysis to ensure the strongest tax planning around the accounting method change. This recommendation by 12|21 FCG to change the accounting method allowed a large tax payment to be deferred and spread over multiple tax years, as opposed to the lump sum payment it would have needed to pay.

12|21 FCG took over all treasury duties and in doing this, worked with current bank to term-out line-of-credit balance that had been used for long-term needs into a three-year term note, then renegotiated a new line–of-credit amount, giving the company three-times the amount of available line than it had previously had. Re-positioned both bond fund and money market funds that were not in line with current treasury strategy to align with business expansion model.

12|21 FCG enhanced the accounting reporting by developing a detailed working cash flow model that was updated and discussed with management on a bi-weekly basis, allowing management to plan appropriately during both high project volume periods and slower project volume time. Additionally, the company’s annual operating budget was developed by 12|21 FCG and monitored monthly, with variances discussed with management, as well as a mid-year re-statement to capture the on-going growth changes. 12|21 FCG developed and implemented a new commission plan for the sales team, as well as a quarterly bonus plan for the COO based around achieving certain tiered gross profit and gross profit margin goals.

12|21 FCG performed on going out-source CFO support, as well as CEO business strategy advisement consulting.