Integrating Operational Flow and Financial Flow

Maximizing Cash Flow and Tax Savings in Real Estate Construction


Problem

A very successful executive search firm with five office locations was having trouble generating monthly financial statements and management reports. These monthly reports contain information vital to financial planning, without which the company reached a critical point. As they continued to grow, they found themselves lacking the key financial information required to properly expand. This resulted in unnecessary reconciliations, which had an impact on financial flow.

Approach

When installing the new accounting system, it was vital that we integrated the company’s very successful operational system into their new financial system. The key to the FlowFirstTM management model is the integration of sales flow, operational flow, and financial flow, in order to maximize cash flow.

Solution

The company’s existing operating system was producing reports that contained vital financial information, but they were not being included the monthly financial statements and reports. Working with a programmer we were able to integrate this important financial information, such as searches booked and commissions, into the company’s new accounting system. This reduced double entries into the two systems the company had been running, and eliminated the need to expend additional capital on manual reconciliations. Our ability to interface between the programmer and the client was key to the integration of the two systems.

Outcome

The company is now able to generate the financial statements and monthly management reports needed to continue to grow. Twice a month the company runs a program that captures key information from their operating system, which they incorporate into their financial and accounting data. Financial information is verified every month, and countless hours are saved. A company with sales flow and operational flow has now achieved financial flow.

Read more on how Hart Vida & Partners works with boards of directors, owners and management to provide guidance and advice in developing strategies and plans to drive growth, improve profitability, raise capital, and execute transactions.

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