Background
An entity owning multiple franchises of a prominent hotel chain was experiencing rapid growth. While business was thriving, the expansion exposed gaps in their accounting operations. Their small accounting team, consisting of just two accountants, relied on QuickBooks for bookkeeping and Excel for managing sales and expenses. This approach, though functional initially, began to break down under the weight of their expanding operations.
Challenge
The organization faced a trio of key challenges:
(1) the accounting team was overwhelmed and struggled to close the books in a timely manner;
(2) the absence of standard operating procedures (SOPs) led to missed vendor payments and process inconsistencies; and
(3) management lacked access to accurate and timely financial and management reports, hindering their ability to make informed business decisions.
Approach
MGO conducted a thorough analysis of the entity’s accounting processes and systems. Recognizing the need for a scalable solution, we recommended transitioning from QuickBooks to a more advanced accounting system. The goal was to automate processes, enhance efficiency, and provide management with the financial insights required to drive strategic decisions.
We implemented Sage Intacct as the general ledger system and integrated it with the entity’s banking systems. We also incorporated a series of new tools to address:
- Sales processing, forecasting, and budgeting
- Accounts payable and bill processing
- Expense management
- Payroll.
In addition, we established SOPs and controls to streamline workflows and facilitate adequate review and approval processes. To further bolster the team’s capabilities, we recommended outsourcing a controller and a senior accountant. These professionals provided critical support, addressed the growing needs of the business, and trained the existing accounting team.
Value to Client
The transformation delivered immediate and measurable benefits:
- Faster closings: The accounting team now closes the books within 3-5 business days of month-end.
- Informed decisions: Management receives timely and reliable financial reports, empowering strategic decision-making.
- Scalable support: Outsourced professionals provided experience and continuity during a period of rapid growth.
With streamlined workflows, improved financial reporting, and enhanced operational controls, the organization is well-positioned to manage its expansion and capitalize on new opportunities.
Take Control of Your Accounting Operations
Don’t let operational challenges slow your growth. Our outsourced accounting solutions can help streamline your processes and provide the knowledge and experience you need when you need it. Reach out to our team today to learn how we can help your business thrive.