Introduction

‍A highly successful company in the 8(a) Business Development Program faced significant challenges with their financial management after rapid growth. Starting from a garage, the company's annual revenues soared to $30 million, prompting the purchase of Sage 300 Timberline software. However, the staff struggled with the complex system, leading to inefficient financial practices and inaccurate reporting.

Challenges

‍The initial excitement about the new software turned into frustration as the staff failed to adapt, resulting in financials being managed through Excel. The lack of timely and accurate job cost information led to losses on projects for the first time in the company's history. Project managers and foremen received outdated and unreliable data, impacting field operations significantly.

Solution Implemented

‍RedHammer intervened with a multi-faceted approach to streamline the financial processes:

• Accounting Data Cleanup: Conducted a comprehensive cleanup of existing accounting records.
• System Reconfiguration: Overhauled Timberline to ensure all postings were accurately recorded and information flowed seamlessly between departments.
• Weekly Job Cost Meetings: Initiated weekly meetings to provide current job cost updates and facilitate proactive management.
• Job Closeout Feedback: Established formal meetings for project closeouts to enhance estimations and planning for future projects.
• Accounting Department Reorganization: Restructured the accounting team to optimize resource allocation and expertise.

Results

‍The restructuring and system improvements yielded remarkable results:

• Timely Financial Reporting: Shifted financial reporting back to Timberline, significantly enhancing the timeliness and accuracy of reports.
• Insightful Job Costing: Provided crucial insights into estimation errors and execution issues, improving project outcomes.
• Enhanced Inter-departmental Communication: Fostered a collaborative environment that bridged gaps between accounting and field operations.
• Reduced Overhead Costs: Achieved a 39% reduction in accounting-related overhead expenses by streamlining processes and enhancing system utilization.

Conclusion

‍This case study illustrates the transformative power of proper financial software implementation and staff training. RedHammer’s strategic approach not only rectified existing inefficiencies but also set the company on a path to sustainable financial management.

Call to Action

‍Are you facing similar challenges with your financial software? Contact RedHammer to discover how our customized solutions can optimize your business operations.

‍