Interim CFO Services Help Custom Embroidery and Commercial Screen Print Company Master Key Performance Indicators to Promote Growth.
LARKSPUR, Calif. (December 06, 2011) -- Pacific Crest Group (http://www.pcg-services.com), the Bay Area service firm that optimizes finance, human resources, and IT so their clients can build their business, has just completed a project for Blue Frog, a commercial screen printing and embroidery company in San Leandro, California, that has resulted in a four-fold increase in company profits. By using Pacific Crest Group’s outsourced controller and interim CFO services, Blue Frog was able to refine its profit-and-loss reporting, resolve a chronic cash flow issue, and optimize operations to ensure ongoing profitability.
Pacific Crest Group was instrumental in redefining the business systems needed to give Blue Frog CEO Mike Givvin control over operating costs and profits. Blue Frog was founded in 2001, and for more than a decade has been outpacing its competitors in sales growth at the same time it was underperforming in profits. The company also consistently wrestled with cash flow concerns, so to address those problems, Givvin retained Pacific Crest Group to provide accounting, controller, and CFO support.
Pacific Crest Group’s team of accounting experts first reviewed the company’s financials and accounting systems. As part of this process, Pacific Crest Group implemented new data entry and data tracking procedures to standardize expense tracking. Ultimately, the results required reorganizing Blue Frog’s income and expenses to provide consistent data for analysis. The next step was to create a Key Performance Indicator (KPI) report to determine what factors were affecting the company’s bottom line.
TJ Van Voorhees, CEO of Pacific Crest Group and filling the role of interim CFO for Blue Frog, assessed the company’s profits and losses and determined that the company’s staff-to-revenue ratio was off. The company had grown to nearly 100 employees in 10 years, and the assessment showed that staff costs made up more than two-thirds of the company’s overhead. Adjusting the employee headcount by one or two staff members meant the difference between profit and loss.
Van Voorhees created financial models supported by KPIs that allowed Givvin insight into operational costs that he could more effectively manage. Now Givvin had a few numbers where he could implement real change to his operations. The result was an immediate improvement in cash flow and a four-fold increase in profitability. Simply stated the fog was lifted from the confusion of too much data.
“The KPI model was the missing piece,” Givvin said. “Now I have an operational dashboard in place that summarizes the important numbers on the P&L, available cash, and critical performance metrics. I can use it every month to make adjustments to be sure the company is on track. Most importantly, I don't go home with headaches anymore.”
About Pacific Crest Group
Pacific Crest Group works with entrepreneurial organizations to help them unleash their potential by eliminating the friction and chaos caused by business processes. Founded by a team of entrepreneurs with expertise in accounting and finance, Pacific Crest Group has built its reputation by identifying organizational needs and opportunities for improvement, and optimizing financial procedures, computer systems, and human resources so clients can focus on their core business. Pacific Crest Group approaches financial and business management like a consulting physician, with an understanding that some problems can be isolated and fixed while others need a more holistic approach.
The firm is based in Larkspur, California. For more information, visit Pacific Crest Group online at http://www.pcg-services.com.
-Ends-
Contact:
Franka Winchester
Pacific Crest Group
(415) 461-2586
Tom Woolf
Woolf Media & Marketing
(415) 259-5638
No comments:
Post a Comment