A U.S.-based life coaching business was profitable but short on cash, with poorly classified accounts and late filings that were attracting penalties. We provided fractional CFO and accounting cleanup services to restore order to its records and give the owner a clear view of cash ahead.
- Location
- United States
- Sector
- Life Coaching
The Brief
The Client asked us to provide fractional CFO services and clean up accounting records that were full of poorly classified transactions.
We were also asked to find and fix the source of government penalties linked to delayed annual filings, and to improve visibility of future cash flows for better day-to-day management and planning.
The Obstacle
Revenues and profits fluctuated, and despite being profitable, the business faced cash flow and liquidity pressure.
Its accounts were riddled with misclassifications, and late or incorrect filings were triggering payroll penalties. Both had to be unpicked before the numbers could be trusted.
Our Approach
We restructured the accounts so the financial statements give a true and fair view of the company's health and meet regulatory deadlines.
As fractional CFO, we then put cash flow and liquidity management strategies in place, giving the business a steadier footing through its revenue swings.
What We Delivered
Improved cash visibility, financial reporting and compliance by:
- building a rolling 13-week cash flow forecast to strengthen liquidity planning and cash management;
- restructuring the accounts and correcting transaction classifications to improve the reliability of financial reporting;
- resolving filing and payroll issues to strengthen compliance and reduce recurring penalties.
Our Impact
The owner gained a working familiarity with her business's finances and a structured approach to strategic planning and cash flow management.
Along the way, restructuring the accounts opened the door to claims for missed tax refunds, and correcting the filing process ended the payroll penalties, delivering significant cost savings.