Business Advisory & Business Accounting Case Studies
Effectiveness and Growth Enhanced by Strategic Partnership
Strategic advisory, financial planning, monthly
and outsourced CFO, accounts payable
Gross Revenue: $2.7 million
Type of Business: Limited Liability Corporation
Scope of Operations: Three business divisions operating in 16 states
In 2007, an accomplished businessman came to HORNE LLP planning to purchase the assets of three separate businesses- a wholesale business, as well as two retail businesses- with the vision of consolidating them into one company. Already an existing HORNE client, the new business owner further engaged HORNE's business advisory services and accounting outsourcing team to evaluate his options.
HORNE was initially engaged to facilitate a financial plan and carry out due diligence for purchasing the three businesses that would become one company. The goal was to generate a smooth transition following the company's inception by seeking HORNE's financial leadership, accounting and strategic advisory services. The emerging company soon expanded services with HORNE and began using HORNE's monthly accounting and CFO services. By 2010, HORNE had taken over accounts payable management services, too.
Engaging a strategic accounting partner became an obvious need to the growing company, and they recognized HORNE's strategic advisory guidance extended beyond just tax implications. HORNE now carries out routine accounting duties for the company, and has also become involved strategically. HORNE has learned the business cycles specific to the company's market and continues to optimize accounting services to suit the particular needs of this business.
HORNE's approach is strategic and succinct-it's market-driven, customer-driven and proactive. By seeking additional information to further understand the business, HORNE has been able to help the company to seize every opportunity for effectiveness and growth.
Outsourcing Business Functions Keep Company Mission-Focused
Services Provided: Accounts
receivable and accounts payable
general ledger maintenance, budget preparation, cash flow analysis
Total Assets: $9.5 million
Type of Business: Nonprofit
Scope of Operations: Statewide
The leadership of a nonprofit blood collection and distribution center engaged HORNE's business advisory and outsourced accounting team with a strategy to begin outsourcing all their non-core business functions in 2003. This independent, nonprofit had discerned that using in-house administrative staff to perform elements not critical to their company's mission was shifting the company's focus away from their primary purpose. Their outsourcing strategy included outsourcing the accounting functions for the company.
With HORNE assuming full responsibility for the accounting aspects of the blood center, they've in turn been able to focus on what they do best: collecting and distributing blood.
HORNE began providing essential accounting functions immediately for the center, and they have modified their services as needed to facilitate forward progress. Internal controls are one of the areas of strongest improvement in the company since they began outsourcing with HORNE. HORNE has been able to deploy their own resources well- figuring out what services are valuable for the company and managing the challenges of growth. This type of client-vendor partnership shares goals and has established HORNE as an extension of the company, rather than a separate entity.
In terms of dollars spent on HORNE's business accounting services, the nonprofit actually spends less by outsourcing their accounting needs than if they hired full time staff on their own payroll. However, the most important factor in the business relationship has been the company's ability to avoid juggling administrative tasks among themselves, and remain free to focus on the blood industry and their center's mission. The improvements have made a significant difference in both productivity and efficiency for the blood center. HORNE's strategic relationship with this client has also facilitated operational effectiveness and made considerable contributions to the client's growth and success.
Relationships Key to Success
Financial planning, outsourced CFO and accounting services,
payable management services
Gross Receipts: $13.7 million
Type of Business: Nonprofit
Scope of Operations: 400 employees serving 260 clients in eight counties
An executive director of a state-funded, nonprofit agency dedicated to providing programs and services to developmentally challenged clients realized the agency's need for outsourced accounting functions. The agency serves more than 250 individuals, has a staff of more than 400 employees, and manages programs in eight counties. While services were initially sought from an accounting firm other than HORNE LLP, the agency soon recognized their need for an accounting firm with specific experience in both the health care and nonprofit industries. The nonprofit then engaged the partnership of HORNE's business advisory and outsourced accounting team and began building a relationship that has spanned many years.
Having an accounting firm familiar with nonprofits has been a strong point for the agency, as being a nonprofit affects many of the ways business is conducted. HORNE has guided the nonprofit as they walk the fine line between running a business and providing a vital public service.
As the agency has become more sophisticated as a business entity, HORNE has also guided them through the process of growth. HORNE has managed the needs of the agency as those needs have evolved. HORNE currently provides accounts payable management, outsourced accounting services to include general ledger maintenance, and routinely provides consultation on specific projects and special needs. HORNE has been instrumental in the budgeting process and budget management at the nonprofit.
HORNE has provided the agency with advice, options and opinions in anticipation of more development in the years to come, but it has been the relationship with the individuals at HORNE that has provided the true distinction from other firms. This relationship with the HORNE team has moved the agency beyond just the numbers and figures into a strategic partnership with their accounting outsourcing and business advisory team.