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The Landscape

Kirsch CPA Group was engaged by a long established manufacturing and distribution enterprise, with sister companies in vertically integrated, cyclical industries. The industries are transitioning from relationship based to commodity. There is a very competent internal accounting team in place.

Key Strategic
Financial Objectives

  • Be a resource for the internal team
  • Proactive tax planning due to cyclical nature of industries
  • Growth strategies surrounding cyclical nature of industry, working capital and cash flow

The KCG
Service Plan

  • Monthly review of internally prepared financial statements
  • Preparation of annual cash flow forecast, with monthly update and review
  • Monthly strategic planning sessions with key management to review key financial metrics and strategic matters.
  • Quarterly tax planning for family and non family owners
  • Preparation of annual audited financial statements
  • Preparation of federal and multiple state income tax returns

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The Result

First year audit of financial statement was completed to satisfy lending covenants – and continued into future years. A forward looking cash flow model was developed and is updated monthly to allow insight into working capital needs. A separate line of credit was negotiated to take advantage of special inventory purchases.

The monthly planning meeting provides structure and focus to make certain that key strategic opportunities are being identified and acted upon. Ongoing tax planning ensures that all tax saving strategies are implemented and tax payments are incorporated into the cash flow model.