CASE STUDY: GROWTH
It's common for creative businesses to operate without any support from financial experts, especially when they’re young. But there typically comes a turning point in the lifecycle of the company when advisement from financial minds is sorely needed—but how do you know when to pull the trigger? What if the company’s growth slows down? Ironically, sometimes you need a financial expert to know when it’s time to hire one.
The Client
The client is an award-winning creative studio. They have been in business over a decade working with a diverse community of artists and creators to produce content across multiple platforms. They have several revenue streams including live-action production, post production, and design.
The Beginning
It doesn’t make sense for most creative studios and production companies to hire an in-house accounting department when they are just starting out. To keep overhead low the client hired a part-time bookkeeper to manage the accounting. This arrangement worked for awhile, but eventually when the company got busier and had multiple projects in production at once the accounting fell behind.
The client also realized that the bookkeeper was not equipped to advise them on financial strategy.
“As we grew having one person doing all the bookkeeping was a lot. It got to the point where we didn’t have the correct information all the time because we were backlogged.”
The client knew something had to change, but were stuck between the decision to invest in hiring an in-house department and outsourcing the work. SYZYGY offers companies the benefits of a resourced accounting department without the overhead or responsibility of employing in-house accountants. We eliminate the client’s responsibility to employ more staff, and free up their time from hiring and training internally.
The Process
“The size of our company doesn’t necessitate the overhead of hiring full time people. It is perfect that we can grow with SYZYGY. As we scale up, SYZYGY can also scale with us.”
Our services cost 20-30% less than other outsourced accounting firms and 70-80% less than in-house departments. By paying us to manage the day-to-day accounting transactions, our clients buy more time to focus on the creative work. When a client engages SYZYGY they have access to CFO-level consulting services, and partners to help analyze risk and collaborate on business strategies that are based on accurate financial information.
The Results
“The reporting and advisement that SYZYGY offers helps us make confident decisions in the way we grow. Prior to working with SYZYGY we would make decisions that were not backed up by hard numbers. It’s helpful to consult with a neutral third party that has experience in the industry at large. SYZYGY gives us sound advice that has been really helpful in terms of growth. They are smart people who know our books and business really well.”
The owners knew that they were making money but needed an expert to decode how much long-term cashflow was available and how each service line was performing. When the client engaged SYZYGY they gained access to accurate reporting and a clear understanding of their company’s profitability. With monthly meetings on the books, the client can see an overview of their finances that looks forward, rather than backward. This data is the basis for strategic conversations about how to facilitate growth and reach financial goals.