|Organization: Telecommunications equipment supplier||Need: Tax guidance and accounting staff during growth and transition||Outcome: Strength and stability are established for continued growth|
Understanding the situation
Significant year-over-year growth is usually a business’s chief goal, but for this family-owned telecommunications equipment supplier, the rapid changes were causing operational challenges.
The growth was so robust employees were overworked. Also, the controller was nearing retirement and the owner much preferred business development to overseeing operations.
The growth-related challenges were compounded by the founder moving from California to Tennessee and opening a new office. Now that the company was in a new state, the founder felt it was time for a new CPA, and reached out to CLA.
Exploring the challenge
CLA works with many organizations experiencing significant growth and knew it could help this telecom company. To start getting them back on track, CLA:
- Assessed short- and long-term needs, priorities, and development plans
- Explored tax incentives
- Verified the company was meeting reporting requirements
- Worked with the outgoing controller on transition
To help cover staffing needs and continue their growth, the company hired CLA to handle many projects, including:
- Specialty tax items during the transition from the former to the new controller
- Assisted with business and personal financial statements
- Talent solutions to find full-time resources
- Payroll services
- State and local income tax nexus
- Reconfiguring compensation models
The company also is talking to CLA about a cost segregation study and using data analytics to augment inventory management and track key performance indicators.
With the help of CLA, the company is projecting to finish 2023 with double-digit percentage revenue and net profit growth.
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