Client Results
Every business we work with has different challenges. Here's how we've helped San Diego clients solve theirs.
Marketing Agency That Couldn't See Which Clients Made Money
The Problem
A creative agency with eight employees was growing fast but the owner had no idea which clients were actually profitable. Some were on monthly retainers, others paid hourly, and a few had project-based contracts. Revenue looked healthy but there never seemed to be money left at the end of the month.
The owner suspected a few big clients were eating up more time than they were worth, but she had no numbers to prove it. Her bookkeeper at the time was just categorizing expenses. There was no visibility into profitability by client or project type.
What We Did
We restructured her chart of accounts and set up class tracking in QuickBooks Online so every hour of labor and every expense could be tied to a specific client. We integrated her time tracking software so billable hours flowed directly into the reporting.
We built a monthly client profitability report that showed revenue, direct costs, and gross margin for each account. We also started meeting with her quarterly as part of our Part-Time CFO service to review trends and plan ahead.
The Result
Within the first two months, she could see exactly which clients were profitable and which ones were underwater. One long-standing account that felt like a cornerstone of the business turned out to be losing money every single month due to scope creep that was never billed.
She had a difficult conversation with that client about pricing and scope. They agreed to new terms. Another account that seemed small turned out to have the highest margins in the portfolio because the work was efficient and the client never asked for revisions.
She restructured her pricing for new clients based on what the numbers revealed. Her overall margins improved by about 12% over the following year, and she finally stopped dreading the end of the month.
General Contractor Flying Blind on Job Profitability
The Problem
A general contractor doing over two million in annual revenue was bidding jobs based on experience and gut feel. He had been in the business for fifteen years and trusted his instincts. But after losing money on a large kitchen and bath remodel, he realized he had no system to track whether his bids were accurate.
His books were current but they only showed totals. There was no way to see costs by job. He suspected material prices had crept up faster than his bids, but he could not prove it.
What We Did
We implemented job costing in QuickBooks so every expense, subcontractor payment, and labor hour was assigned to a specific project. We worked with his office manager to establish a system for coding invoices as they came in.
We created a job profitability report that compared the original bid to actual costs. He could now see gross margin by project before the job was even finished.
The Result
The first month of reports confirmed his suspicion. Material costs on recent jobs were running 8 to 10 percent higher than what he had been estimating. Two jobs that looked profitable on paper were actually losers once all the costs were allocated.
He adjusted his estimating process and started building in a larger materials buffer. He also discovered his smaller punch-list jobs were more profitable than his big remodels because they involved less coordination and fewer change orders.
His margins improved noticeably over the next two quarters. More importantly, he stopped taking on work that looked busy but did not make money. He now reviews job profitability with us before finalizing bids on anything over fifty thousand dollars.
Boat Repair Shop With Seasonal Cash Flow Problems
The Problem
A marine service shop specializing in fiberglass repair and engine work did strong business from March through October. But every winter the owner found himself scrambling to cover rent and payroll. He had two full-time techs he did not want to lose, but keeping them on through the slow months was draining his reserves.
His books were six months behind. He had no idea what his actual monthly expenses were or how much he needed to save during the busy season to survive the winter.
What We Did
We caught up his books and reconciled everything back to January. We separated his expenses into fixed costs like rent and insurance versus variable costs like parts and supplies. We calculated his true monthly overhead so he knew exactly what it cost just to keep the doors open.
We built a simple cash flow forecast and helped him figure out how much to set aside each month during the busy season to cover the slow months.
The Result
For the first time, he understood his real numbers. His fixed overhead was higher than he thought because he had forgotten about several recurring subscriptions and loan payments. Once he could see it clearly, he cut a few unnecessary expenses and renegotiated his parts supplier terms.
He started setting aside a fixed amount every month from April through September. When winter came, he had enough in reserve to cover three months of overhead without stress. He kept both techs on payroll and did not have to float anything on credit cards.
The following year he actually used the slow season to catch up on maintenance and training instead of panicking about cash. He told us it was the first winter in five years where he was not losing sleep over the bank balance.
Craft Brewery Trying to Open a Second Location
The Problem
A San Diego taproom with a small brewing operation wanted to expand to a second location. The owner had found a great space and had a lease ready to sign, but the bank would not approve the SBA loan. The problem was his financials.
His books were a mess. Sales tax filings had been inconsistent for over a year. Inventory was tracked on paper and rarely matched reality. He had no real P&L statement to show the bank, just a rough idea of revenue and a pile of expenses.
What We Did
We went back eighteen months and rebuilt his books from scratch. We reconciled every bank and credit card statement, categorized all transactions, and separated cost of goods sold from operating expenses. We straightened out his sales tax filings and got him current with the state.
We also set up proper inventory tracking and created the financial statements the bank required for the loan application.
The Result
The loan officer told him the resubmitted package was night and day compared to the first attempt. The SBA loan was approved within six weeks. He signed the lease and opened the second location the following spring.
We now handle monthly bookkeeping for both locations with separate P&L statements so he can compare performance. He reviews the numbers with us every month and actually understands where the money is going.
The clean books also helped when he brought on a small investor for the expansion. Due diligence took a fraction of the time it would have taken with the old records. The investor commented that the financials were more organized than breweries twice his size.
Vacation Rental Owner Losing Money Without Knowing It
The Problem
An owner with four short-term rental properties was running everything through a single checking account. Rental income, cleaning fees, repairs, and mortgage payments were all mixed together. She had no idea which properties were making money and which ones were draining it.
She was also nervous about Transient Occupancy Tax. The rules had changed and she was not sure she was collecting and remitting correctly. Her CPA had warned her that an audit could be expensive.
What We Did
We set up class tracking in QuickBooks so every transaction was assigned to a specific property. We separated rental income, cleaning fees, platform fees, repairs, and mortgage payments by address. We also registered her properly for TOT and set up a system to calculate and remit the correct amounts monthly.
The Result
The property-level reports revealed that one condo had been losing money for over a year once she factored in repairs, HOA fees, and vacancy. It was her oldest property and she had an emotional attachment to it, but the numbers were clear.
She sold that property and used the proceeds to pay down the mortgage on her best performer. Her overall cash flow improved immediately. She now reviews profitability by property every quarter and makes decisions based on actual data.
The TOT compliance gave her peace of mind. When the county sent out audit notices to short-term rental owners the following year, she had clean records ready. The audit was closed in a single phone call. Several other owners she knew were not so lucky.
Pool Service Company With Cash Flow That Never Matched the Work
The Problem
A pool service company with over two hundred recurring accounts was doing solid volume but the owner was constantly short on cash. He was floating payroll on his credit card most months even though the route sheets showed plenty of work getting done.
The problem was receivables. Invoices went out but nobody was tracking who paid. Some customers were sixty or ninety days behind and he had no idea. He spent his weekends doing the work and had no time to follow up on payments.
What We Did
We took over his invoicing. We cleaned up his accounts receivable and figured out exactly who owed what and how old each balance was. We set up automatic invoice reminders so customers got a nudge before payments became overdue.
We provided him with a weekly aging report showing exactly which accounts needed attention and followed up on the oldest balances ourselves.
The Result
Average collection time dropped by almost two weeks within the first quarter. Cash started showing up in the account closer to when the work was done. He stopped floating payroll on credit and actually started building a small reserve.
We also identified a handful of customers who had not paid in over ninety days and never responded to reminders. He dropped them from the route. It felt strange to turn away work, but those accounts were costing him money in labor and chemicals while contributing nothing to the bank balance.
He hired a third technician the following summer. The improved cash flow meant he could actually afford to grow instead of just surviving. He told us the weekly AR report was the first thing he looked at every Monday morning. It became his way of knowing whether the business was actually healthy.
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