TWO COMPANIES' EXPERIENCE

ABC Corporation started as a small company. Because of their ability to bid and perform well, sales growth was rapid. However, with growth came increased cash needs for wages and materials. Since good cash management got lost in the growth shuffle, suppliers were demanding COD payments, payroll tax deposits were behind and ABC had to keep tapping their banker for increasing funds at healthy interest rates. When good cash management was instituted by their newly hired controller, the suppliers went back to 30 days, payroll tax deposits were paid on a timely basis avoiding costly penalties, and bank interest and other service charges decreased dramatically.

Another company, call it XYZ, faced problems that came from the lack of a good job cost system. After the new controller implemented a computerized accounting system with good job cost tracking, comparisons of actual costs to estimates were consistently analyzed. XYZ soon found that certain kinds of jobs were actually losing money while others were good profit makers. XYZ lost no time in watching what jobs they bid on and the bottom line is considerable healthier.

These are just two examples of how a controller acts as a money manager for the business: controlling costs, providing ongoing financial information to marketing and management decision makers, and taking the responsibility of ensuring good management of financial resources. A part-time professional controller brings a company these advantages for a fraction of the expense of a person full time.

Call us at (757) 873-4804 or (757) 873-6734 or E-mail to cpatax@widomaker.com for more information about how the program has worked for other companies.

Virginia P. Brierly, CPA