| Organization: $400 million consumer goods distributor and retailer with 700 locations. | Need: Tax strategies to free cash for continued growth investment. | Outcome: $1M annual savings through strategic tax planning. |
Understanding the situation
In business for almost 40 years, a consumer goods distributor and retailer had experienced tremendous growth — totaling 700 stores and almost $400 million in annual revenue.
But such growth requires a lot of investment, and the company had a hefty amount of debt. Cash flow was a challenge, and it turned to CLA, its longtime tax advisor, for help.
Get innovative tax strategies to combat interest expenses.
Exploring the challenge
CLA conducted a thorough analysis of the distributor’s existing tax accounting methods and recommended strategies to enhance its tax positions.
The strategic planning work decreased the company's taxable income and boosted its cash flow, reducing the financial burden from its hefty annual interest expenses.
CLA’s tax strategies have provided us with significant savings, helping to boost cash flow and fund business growth.— CFO, national consumer goods distributor and retailer
Achieving results
CLA’s tax strategies increase the company’s tax deductions and free up $1 million of cash annually, allowing the company to deploy the cash saved on ongoing business operations and continued growth initiatives.
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