Tax returns show profits, but the company has cash flow problems.

Our clients: The owner of a $1 million media placement firm was told by her accountant that she was making money and needed to shelter her income, but she had no money in the bank and unpaid bills were stacking up.

Our solutions: Serving in an advisory capacity, Remote Controller^® determined that her accountant didn’t understand the nature of her business and that cash basis accounting wasn’t appropriate. We then prepared financial statements using the accrual basis of accounting, helping the owner realize that she was just breaking even and not in a position to support herself. Going forward, Remote Controller^® developed a plan to increase revenue, negotiated with vendors on payment plans, and obtained financing. A year later, the company showed a profit, its bills were paid, and the owner had peace of mind knowing that she had a clear understanding of her financial situation and that her company’s books were in good hands.