Forecasting Success for a Fast-Growing Marketing Agency’s Financial Future
The Challenge
As a rapidly growing, woman-owned marketing agency, Kansas-City based Crux faced significant financial management challenges. Their long-time in-house bookkeeper had been promoted to the role of controller, a position that required balancing numerous tasks. This multitasking led to a backlog in expense management and revenue forecasting, pushing financials to become reactive rather than guiding Crux’s strategic direction.
When the controller resigned, Crux recognized the need to elevate its financial operations. They aimed to develop a revenue forecasting model, budget expenses according to revenue goals, determine optimal hiring times, establish consistency in the chart of accounts, create a cashflow strategy, and conduct a full audit of their financial statements.
Crux needed a strategic partner to simplify tasks, deliver quick results, and enhance transparency and decision-making. After considering several firms, Crux chose us for our industry reputation, local presence, high-quality service, and competitive pricing.
Our Solution
Within three weeks, we assembled a specialized team consisting of a CFO, controller, and data analyst/accountant. Our team quickly assumed financial responsibilities and trained with the Crux team before the controller’s departure, ensuring a seamless transition and alignment of knowledge and procedures.
We took over expense management, P&L analysis, and cash flow oversight. This enabled Crux to make well-informed financial decisions backed by expert guidance. We also improved the invoicing process by integrating it into accounting software, establishing automatic monthly invoices, and providing clearer visibility into project costs. This integration enhanced cost transparency for additional projects, preventing financial losses and improving insights into key performance indicators (KPIs).
To streamline approvals and improve financial control, we introduced Bill.com for managing vendors and integrated Jirav, an all-in-one forecasting, budgeting, reporting, and dashboarding solution, into Crux’s financial workflow. This integration consolidated data, reduced manual entry, and improved the accuracy of financial forecasts.
Regular check-in calls were scheduled to ensure ongoing communication and collaboration, which enhanced transparency and fostered a strong working relationship for efficient issue resolution.
Client Impact & Results
Our partnership played a pivotal role in Crux’s financial transformation and ongoing growth. The increased visibility allowed the firm to accurately forecast expenses, leading to a 173% increase in operating income over the previous year and a 13% increase in the total operating cash balance.
The partnership significantly strengthened Crux’s financial health and planning abilities, leading to smoother resource management, rigorous adherence to industry regulations, heightened profitability, improved cash flow, and amplified financial transparency.
“It’s been a game-changer,” said Crux Founder & CEO Melea McRae. “Having three sets of eyes on financial matters keeps us aligned with our growth goals and gives me the peace of mind that we’re controlling the business, versus the business controlling us.”