Unveiling the Hidden $2 Million Gap.
The Challenge of Traditional Methods
In today's challenging economic landscape, businesses can no longer rely on traditional methods to make strategic decisions effectively. This challenge was evident in a steel tubing company, where the Chief Financial Officer grappled with balancing traditional practices amid intense competition. The goal was to establish a consistent and accurate understanding of the company's true costs, crucial for informed decisions on margins, pricing, and purchasing. The CFO, guided by her experienced oversight, recognized the pressing need for a streamlined approach to costing reports. One report alone devoured two precious hours each day, requiring manual data extraction from the ERP system and distribution only upon request. This procedure often led to skepticism and questioned data reliability.
A Financial Reporting Revolution
In their quest for a dependable solution, the company turned to Ablesoft, relying on their track record of successful software implementations. Ablesoft's team delivered a transformative automated daily report with thoroughly validated financials, saving time and reducing tension throughout the organization.
Within these precise financials, a significant revelation emerged, challenging old assumptions. The financial statements revealed $2 million unaccounted for. Factors such as the PPP loan, a sudden surge in customer orders prompted by supply concerns, and the delayed analysis until year-end had concealed this harsh reality for the past three years.
Making Informed Moves with Data
Now, with the time saved through automation, financials were reviewed daily, creating an environment of transparency and efficiency. Inspired by their newfound confidence in predictable outcomes, took decisive actions to adjust volume, procurement, and pricing.
Collaborating closely with their customers, they leveraged this data to make informed purchase decisions, ensuring mutual profitability and consistent stock availability. The unexpected benefit of this transformation was a newfound appreciation for transparency and the elimination of time-consuming reconciliation and recalculations.
Small Business Prosperity through Data-Driven Choices
In this story, our customer embodied the spirit of small businesses where every dollar matters, and data precision is paramount. Thanks to Ablesoft, they turned financial risks into opportunities, demonstrating that data-driven decisions are the foundation of small business success.