CASE STUDY
Outsourced vs. Canadian In House Team

Summary:

YXZ Plumbing is a plumbing and heating services company based in a major metropolitan area. The company has been in business for over 10 years and has built a reputation for providing high-quality services to residential and commercial customers. YXZ Plumbing has been struggling to find reliable bookkeeping staff. Over the past few years, the company has had a high turnover rate of bookkeeping staff. The owner of YXZ Plumbing recognizes the importance of accurate bookkeeping and financial reporting for the company's growth and profitability.

YXZ Plumbing Outsources Bookkeeping for Significant Savings

Client:

In-House Team Total Hours: 1872

Total Annual Cost: $65,992

Challenges:

Despite the company's success, YXZ Plumbing has been struggling to find reliable bookkeeping staff. Over the past few years, the company has had a high turnover rate of bookkeeping staff due to a variety of reasons such as insufficient experience, lack of technical skills, and inadequate attention to detail. The owner of YXZ Plumbing recognizes the importance of accurate bookkeeping and financial reporting for the company's growth and profitability. However, due to the lack of reliable bookkeeping staff, the owner is concerned about the accuracy and timeliness of financial reporting, which is affecting the company's ability to make informed business decisions.

Other Considerations & Issues:

YXZ Plumbing faces significant expenses which are putting a strain on the company' bottom line such as government-mandated sick days, vacation leaves, and statutory holidays.
YXZ Plumbing ensures accurate financial reporting by operating a complex job-costing reporting system across multiple departments.
YXZ Plumbing in-house accounting team struggles to keep up with their workload due to frequent understaffing issues resulting delayed on financial statements reports.

Solution:

After evaluating several option, YXZ Plumbing decides to outsource its bookkeeping services to Path 2 Profit.

By outsourcing the bookkeeping, the company saw significant savings on its expenses by not paying statutory holidays or government-mandatory sick leaves.
Additional cost savings included:
‣ Employee Benefits
‣ Office Rent
‣ IT Costs & Hardware Cost
‣ HR Recruiting & Hiring Costs
Yxz plumbing was able to streamlime their accounting operations and reduce the risk of errors and delays by developing and implementing well-dedinez processes for financial reporting.

Impact:

Outsourcing bookkeeping services to a Path 2 Profit offers several benefits for YXZ Plumbing. Firstly, the company no longer has to worry about finding and training reliable bookkeeping staff, which can save time and resources. Secondly, outsourcing bookkeeping services ensures accurate and timely financial reporting, which enables the owner to make informed business decisions.

Total Outsourced Cost $56,160

Total Hours: 1872

Total Savings Per Jr. Accountant Hired $9,832

18% SAVINGS

Conclusion:

By outsourcing their bookkeeping services, it has enabled XYZ Plumbing to save 18% cost per Jr. Accountant hired while the total hours is exact with the In House Team total hours. Outsourcing bookkeeping services offers significant benefits for small businesses, including reduced overhead costs, improved financial reporting accuracy, and increased productivity. Overall, outsourcing bookkeeping services is a cost-effective solution that ensures timely and accurate financial statements, which is crucial for the growth and success of any business.

Hello, I'm Tiffany-Ann, CEO of Path 2 Profit

With a wealth of experience in scaling service-based businesses from start-up to 7-figures per month, we are the ideal partner to help you take your business to new heights. We work with service-based businesses across North America and have a proven track record of success and expertise in the field.

Our approach is focused on delivering clarity, purpose, and a plan, so you can feel calm and confident about the future of your business. We have a team of experienced bookkeepers who ensure that your finances are in order and a CFO style review process that provides expert guidance on how to optimize your operations. With us, your business is in good hands.