The War Room

Ok Tech sales peeps - tell me what my client needs

What my client does:

Commercial and industrial painting, mainly painting, floor coating, epoxy, fire proofing, and intumescent. They're a relatively new subcontractor who does work for other, larger GCs on projects for MTA, SCA, DEP, PANY/NJ, Veteran Hospitals, LIRR, SIR . Annual revenue around $16M, about 150 employees.

Her issue:

COMPLETE ACCOUNTING DISASTER. She doesn't really have a proper bookkeeper, and her QuickBooks are a hot mess. She's losing a ton of money because she literally forgets to bill people for her services, and no one follows up to collect payment. So of that $16M, she probable has like $16k in the bank at the end of the day. Her accountant is helping her as best he can, but that costs her $500 per hour. She's stubborn as all hell and has a million spreadsheets all over the place. Finding a good bookkeeper who knows this field is hard to come by, and who knows if she would even pay for that.

SO, what exists that I can recommend?

☁️ Software Tech
🦾 Hardware Tech
πŸ’Ύ Product
VP of Sales
Step 1. She needs to read Profit First as step 1.Β  (This is a mind set issue, not a technology problem)

Step 2. Find a new accountant and hire a book keeper to manager money going in and out.Β  Cost should be $200 max an hour for a good one.

Step 3 - Jirav is a great forecasting and money management software.

Step 4 - Have her hire a fractional CFO to manage the money and let her do the business.Β  $30-40K a year to saye a couple million is well worth it.
WR Officer
Master of Disaster
Oh I agree it’s a mindset issue, @abc_myfriendΒ . She’s difficult to reason with! She should absolutely hire a CFO, but in her mind she thinks that because she does $16M that everything is fine. I was hoping that some shiny new tech would entice her to move in the right direction.

Also, that’s the going rate for construction focused CPAs in NYC. They’re aren’t many, and the bigger firms are even more expensive. They often just quote a flat rate for financials as well. This is beyond that.Β 

And yes, a controller would be ideal but she isn’t going to find one that will do the job for under $150k. Even a decent bookkeeper wouldn’t be less than $75k. Even with those salaries, it’s still a good idea. But in her mind she can get by with shitty spreadsheets on her own.Β 
Old School Bravo
Salesforce Consultant
Sounds like she needs some solid operations help - the accountant can only do what they can with what they have.

Does she have Salesforce or any type of CRM? I'd start tracking deals there and creating the structure and processes around orders, invoicing and collecting.
WR Officer
Master of Disaster
Thanks! I’ll ask.Β 
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