CASE STUDY

Financial Transformation with Precise MGMT

CLIENT OVERVIEW

Industry: Investment Firm

Annual Revenue (at start): $1-2 Million

An investment firm initially sought help from Precise MGMT to address their pressing financial challenges. Despite having a loyal, long-term employee managing their finances, their founder was unable to obtain reliable, timely financial data. This lack of clarity led to inconsistent financial reports and hindered decision-making, leaving the founder spending excessive hours in QuickBooks without confidence in the numbers.

CHALLENGES

Before partnering with Precise MGMT, the client faced several key financial challenges:

Unreliable Financial Data: The firm’s financial books were inconsistent, making it difficult to assess profitability and cash flow.
Inadequate Financial Skills: A long-time employee managed the finances but lacked the expertise needed to support their growth.
Founder’s Over-Involvement: The founder spent hours manually trying to understand their financial position, leading to inefficiency
Discrepancies Between Cash Flow and Reports: The monthly financial reports were often misaligned with their cash position.
Tax Reliance: Accurate financial snapshots were only available during the annual tax return preparation, which was insufficient for day-today decision-making.

GOALS AND EXPECTATIONS

The client sought a fractional CFO with several key goals in mind:

Timely and Accurate Decision-Making: They needed dependable financial data to make informed, real-time business decisions.
Budgeting and Metrics: They desired expert guidance on budget creation and performance tracking.
Financial Comparisons: The client wanted to understand their financial standing relative to other investment firms.
Fraud Risk Mitigation: With only one employee managing both bill payment and cash authorization, they needed to reduce the risk of fraud.

Why Fractional CFO Services?

They recognized the need for financial expertise but could not justify hiring a full-time CFO at their current business stage. By opting for a fractional CFO from Precise MGMT, they gained access to a seasoned financial advisor who could deliver insights, tailored strategies, and benchmarks without the full-time commitment or cost.

The fractional CFO model also provided the client with the benefit of working with an expert who was familiar with other financial firms. This allowed the client to leverage industry-wide best practices and gain competitive insights.

Precise MGMT approached the client’s situation with a structured plan that focused on solving their immediate financial issues and building a foundation for long-term growth. Key strategies included:

Comprehensive Financial Assessment: Precise MGMT reviewed their financial setup and created an action plan to meet the firm’s unique needs.

Advanced Bookkeeping and Fractional CFO Services: This bundle allowed the client to offload day-to-day financial tasks while gaining strategic insights for decision-making.

Fraud Risk Reduction: Precise MGMT implemented stronger controls, ensuring that financial transactions were handled securely and the risk of fraud was minimized.

Budgeting and Key Metrics: Using historical data and future goals, Precise MGMT built a budget and identified key metrics, providing the client with an easy-to-understand financial dashboard.

Monthly Reporting: Financial statements were delivered within 10 days of month-end, giving them timely insights into their financial position.
Over the course of the eight-year engagement, the client experienced significant growth. Precise MGMT’s role evolved as their needs expanded. As the client grew its revenue, transitioned to a new accounting system, and eventually sold their operating business, Precise MGMT adapted their services to support this evolving structure. Regular check-in meetings and ongoing reporting ensured that they always had a clear understanding of their financial position and could pivot as needed.
Cost Savings: By switching from a full-time employee managing the books to Precise MGMT’s fractional CFO and bookkeeping services, the client cut their financial management costs by 50%, reducing an annual spend of $60,000 to $30,000.

Revenue Growth: The client tripled their business, increasing revenue from $1.5 million to $7.5 million by the close of 2023.

Streamlined Operations: Precise MGMT helped prepare the client for due diligence during their acquisition process, ensuring the firm’s financials were in order with minimal additional work.

Reduced Founder Burden: The founder was able to step back from financial operations, trusting the data provided by Precise MGMT and focusing on growing the business.

CLIENT SATISFACTION

The client’s founder expressed great satisfaction with the partnership, particularly highlighting the skill and dedication of the Precise MGMT team. The ability to synthesize complex data into actionable insights, coupled with the team’s proactive approach to learning new systems, ensured that they could continue growing without disruption.

TESTIMONIALS FROM RIA CLIENTS

"Precise’s expertise has been extremely valuable, especially due to our limited resources. The value we receive is great. I, Scott, consider Will and Arus to be an extension of the Mosaic team. They have both been proactive in facing challenges, such as learning new systems, which speaks volumes about their dedication to our success." — Scott, Founder of Mosaic

LOOKING AHEAD

The client’s future strategy is focused on acquisitions as a path to growth. Precise MGMT continues to provide weekly support, guiding them through the financial complexities of acquisitions and compliance, ensuring that the firm is wellpositioned for its next phase of expansion.

CONCLUSION

The partnership between the client and Precise MGMT showcases the transformative power of fractional CFO services. With cost savings, increased efficiency, and revenue growth, the client is now set to achieve its goal of becoming a household name in financial advising.

"We have been thrilled with the support we've received from Precise MGMT. Their expert guidance has truly streamlined our financial operations and helped us set clear, actionable goals. The team's responsiveness and attention to detail ensure our needs are always met promptly and accurately. Precise MGMT has been instrumental in identifying and addressing risks, significantly strengthening our business processes. Their professional support has been a key factor in our continued success and growth." — Jennifer T. & Chris H., Hendrick