25 Jul Why One CEO Outsourced His Accounting, And How It Grew His Bottom Line
Have you ever felt like you spend a lot of money for what you get from your accounting department?
It could be that you don’t feel like you’re getting an accurate or timely report of where your money’s going, or you’re not quite sure when you last saw a complete, up-to-date budget.
Or it could be that you’ve been frustrated by penalties and interest from missed payments, which you assumed the accounting department was on top of.
You may also feel that now that your business has grown to a certain size that you HAVE to have someone in-house to manage your bookkeeping, that it would be too difficult for a third party to handle.
But that’s not always true.
Such was the case with Paul Sponcia of The IT Company in Knoxville. Paul is the Principal and CEO of The IT Company, which provides outsourced IT services for small and mid-sized businesses to ensure their technology hums along safely, reliably, and consistently. Considering the IT Company’s customer satisfaction rating of 98.6 out of 100 in 300 reviews in the past 90 days, they’re clearly doing something right.
However, although clients were happy and his business was growing, Paul felt that his in-house accounting department was not delivering what he needed to really understand the business’s finances. He felt like he was overpaying for inconsistent and incomplete financial services, so in April, 2018, he turned to Two Roads to reduce his accounting payroll AND get better results.
We recently sat down with Paul to see how outsourcing The IT Company’s accounting has been going:
Q: How were The IT Company’s CFO-type tasks handled before hiring Two Roads CFO Advisory services?
Paul: Our situation was that we had an in-house employee, whose role wasn’t as a CFO but more like a Controller or Director of Accounting. Still, I felt like I wasn’t getting the information I needed in a timely fashion. The individual was pulled in different directions outside of the finance functions, and I didn’t think we were getting the accuracy and the type of information we needed.
Then when I evaluated the situation based on a cost perspective, I struggled with what I was paying versus the value I was getting. Intuitively, I felt like for the size of our business and the way our business operates that I could get better information and not have to pay the same for a full-time person in-house.
That was the driving force. I had also worked with Two Roads through some of our other businesses, so I had some experience with the agency. It felt like a smart move.
Q: What made you think it was time to switch to outsourced CFO services?
The person that we had in-house just wasn’t delivering on the value we needed. We were not getting information on a timely basis, sometimes we would get financials 2 months or 3 months later. We didn’t get a lot of explanation, nor a lot of data or metrics to go along with the financials when we did get them. We could never seem to get a budget done. So honestly, I was just exacerbated. Overall, the situation wasn’t delivering good information and I needed to save money. Those were the 2 drivers—I wasn’t getting timely information and I felt like I was overpaying.
Q: What has it been like working with Two Roads CFO Advisory Services?
It may be a unique situation for us in that the two people at Two Roads working with us had also worked in our industry, so that was a huge plus. Knowing that Will and Melissa came from our business, understood what a financial statement from our industry should look like, understood metrics of our business and the flow, was a big deal for me. I felt we could move forward faster because the experience level in our industry was already there. I knew I would get better, more accurate information and insight than I had before.
The experience with Two Roads has been great. We started out with CFO Advisory services, then added bookkeeping as well. The onboarding was great, and the information we get is as timely as we’re able to digest on our side. The data is usually ready within a couple weeks and it’s just a matter of us getting our schedules synced to meet. Overall, the win is much better financial information, much faster.
We had one of our best years last year and I’d largely attribute that to having really good information, knowing what needs to be done, when it needs to be done, how we need to do it, and what the impact of making those decisions would be.
Before, if i wanted to hire someone or do something I just didn’t know and couldn’t actually say what the impact would be, or I couldn’t really trust it. Something didn’t seem right, but I couldn’t put a finger on what it was.
Now, I have forecasts, budgets, and can put information in and talk to Melissa and Will at Two Roads. I can ask what the impact of any given decision would be and they can tell me.
It all comes down to receiving better, faster information that is relevant and timely. I can use the information to confidently make decisions. Some of the information is rear-facing but a lot of it is forward-facing because we have budgets and forecasts. I can look at the budget and apply it to the forecasts and see how that will modify and change things, which helps me make better decisions.
Q: What’s your confidence in your ability to navigate the future now vs. before?
I have more empirical data to go on than before, and a much higher degree of confidence that the data is accurate and I can use it to make decisions. I also have better information for tax purposes, banking relationships, and all those important things. So my confidence is 100% higher than it was before, and I couldn’t be a better champion for Two Roads at this point based on my experience.
Q: What would you say to someone considering Two Roads CFO Advisory services?
Of course I don’t know everyone’s business so it’s somewhat situational, but I can certainly say that from my experience I’m completely happy. I’d say it’s one of the top 5 decisions I’ve made in 20 years of doing business.
Curious if Two Roads CEO Advisory services might help you feel better informed and have more confidence in making financial decisions about your business? Click the image below to schedule a call with us. We’d love to talk with you about how we can help you achieve your vision for your business. Learn more about us at tworoadsco.com, call us at (865) 212-0063, or schedule a call online.