CASE STUDY
Outsourcing Bookkeeping Services Saves 20%

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.

By outsourcing their bookkeeping services, it has enabled XYZ Plumbing to save over 20% on overhead costs while also improving the accuracy and timeliness of financial reporting. Outsourcing bookkeeping services offers significant benefits for small businesses, including reduced overhead costs, improved financial reporting accuracy, and increased productivity.

YXZ Plumbing Outsources Bookkeeping for Significant Savings

Client:

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.

In-House Team Size: 5

Total Annual Cost: $348,600

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 financial challenges due to the cost of government-mandated sick days, vacation days, and statutory holidays, which are putting a strain on the company's bottom line.

  • YXZ Plumbing operates a complex job-costing reporting system across multiple departments to ensure accurate financial reporting.

  • Due to frequent understaffing issues, the in-house accounting team at YXZ Plumbing struggles to keep up with their workload. As a result, financial statements are frequently delayed by weeks, creating significant challenges for the company's financial planning and decision-making processes.

Solution:

After exploring several options, YXZ Plumbing has decided to outsource its bookkeeping services to Path 2 Profit.

  • By outsourcing the bookkeeping the company saw an immediate savings equivalent to twenty working days per year per person by not paying statutory holidays or mandatory sick days.

  • Additional cost savings included:

    ‣ Employee Benefits

    ‣ IT Costs

    ‣ Technology Hardware

    ‣ Office Rent

    ‣ HR Recruiting & Hiring Costs

  • By developing and implementing well-defined processes for financial reporting, YXZ Plumbing was able to streamline their accounting operations and reduce the risk of errors and delays.

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 $288,000

Total Bookkeeping Savings $60,600

Total Additional Savings $9,500+

20%+ SAVINGS

Conclusion:

By outsourcing their bookkeeping services, it has enabled XYZ Plumbing to save over 20% on overhead costs while also improving the accuracy and timeliness of financial reporting. 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.

Intuit Quickbooks Online Logo for our partnership
Business Affiliate QBO Quickbooks Online

Hello, I'm Tiffany-Ann,

CEO of Bottcher

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.

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Quick Links

Why Choose Us

How does it work

Pricing

Social Media Links

Contact Us

(604) 337-0410

8661 201st Street, 2nd Floor

Langley V2Y 0G9

© 2024 – Bottcher Group of Companies | All Right Reserved