Retail Business Gets Realistic Picture of Business Trouble Spots

The Issue

The owner of a privately-held retail business contacted FullView Financial because he’d lost faith in his company’s financial reporting system. He felt the reports he was seeing didn’t accurately reflect the results of the company’s operation, and he was frustrated that no one in his company understood the connection between the financial and operational sides of the business.

The accounting system had been set up haphazardly, making the information difficult, if not impossible, to properly find or analyze. Employees were distracted by multiple reporting responsibilities and a lack of coordination between departments. No one could get a clear picture of where the business was heading, or see which units were profitable.

The Solution

Using The FullView Solution™, we were able to uncover the issues standing in the way of clear reporting. As an important step, the accounting system was made to be more GAAP-compliant so that inventory could be properly valued. FullView Financial also rearranged the general ledger system. Through consolidating and simplifying reports, a snapshot of the business could be captured on a single page, clearly showing profitability, cash flow, and debt levels for every individual unit and in total.

The Result

The ability to read a snapshot of the business operation gave the business owner new confidence. Immediately, he was able to see that one store wasn’t profitable and to take the necessary action to change it. With a reliable picture of how the company was growing and where it was making money, the owner could now prepare the business, when timing was appropriate, for sale to interested buyers.

This case study is for illustrative purposes only. Individual facts and circumstances may vary. As a result individual results may vary.

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Construction Company Strengthens Cash Flow

The Issue

For the owner of a construction company, complex issues in both his business and personal affairs were affecting his ability to run his company. He faced a long-standing tax situation, his debt structure was a daily concern, and he was unsure of his cash flow beyond 30 days. Although his estate was quite significant, nothing had been set up beyond basic wills and trusts. In addition, there was no succession plan for the business or the owner.

The Solution

Using The FullView Solution, we pinpointed the many issues involved and rolled out a plan to address them all. First, FullView Financial improved coordination between the owner’s attorneys and accountants to resolve the tax issue once and for all. Additionally, the owner’s real estate was removed from his personal and company name and moved into family partnership structures, producing immediate estate tax savings of more than $2 million.

A debt reduction schedule was set up based on a sustainable cash flow projection that wouldn’t affect operations, and a gifting program was started for estate purposes.

The Result

The owner is thankful for the confidence and new sense of freedom he gained working with FullView Financial. His priorities have been simplified, allowing him to focus on growing and strengthening his company. With a succession plan now in place, he’s ready for a change in ownership—on his own terms—within the next 3 years.

This case study is for illustrative purposes only. Individual facts and circumstances may vary. As a result individual results may vary.

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