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SPS Case Study

 

Identify and Remove Financial Roadblocks

Transcending "just" tax advice, Sobul Primes & Schenkel does so much more for their clients.

 

the problem

 

Falling profits for a small post-production house when volume looked good on paper

 

sps found the answer

 

During routine tax return visit, SPS noticed high-profile break-even jobs were monopolizing resources away from profitable low-profile work

 

overhead analysis

 

SPS’ thorough overhead analysis gave client clearer picture

Even the most-conscientious business owner may have difficulty seeing flaws in his company. There is such a thing as being too close to the problem. That’s when it pays to have an extra pair of scrutinizing eyes.

 

Sobul, Primes & Schenkel (SPS) helps clients with all areas of their business. Indeed, the firm offers clients across-the-board financial services that reach from essential accounting methods to intricate human resources challenges.

 

"Business processes are like fingerprints. Each one is unique," says SPS Principal Kyle Taylor. "And we have the resources to comb through various business clues to see what areas of a company need shoring up."

 

Case in Point

Post Product Case Study, Los Angeles Accounting Firm

One client, a small post-production house, noticed lagging profits during a time when volume looked good on paper. The sales staff had out performed expectations, signing up high-profile editing clients. Such notoriety, it was thought, was sure to beget more business.

 

So why, they wondered, were profits falling? The answer came during a routine SPS visit as they reviewed the company’s yearly tax return.

 

Business processes are like fingerprints, each is unique. At SPS, we have the resources to comb through various business clues to discover what areas of a company needs shoring up.

"They were almost exclusively bidding on high-profile jobs that were below the break-even point," Taylor said. "This approach was eating up resources for low-profile jobs they should have been taking."

 

The company had failed to take into account that high-profile projects took longer and demanded the talents of their expensive senior-editing team. Because the company had only a fixed number of work stations, less-expensive associate editors were unable to generate budgeted, billable hours on more profitable short-term engagements.

 

"Senior editors were spending up to a month and a half on a single project, which is typical for a high-profile project," said Taylor, adding that the company was paying senior editors unbudgeted overtime. "If they had simply booked less-competitive, commercial jobs, associate editors could have completed them in a couple of days — at a profit."

 

A complete evaluation

SPS takes a holistic approach to accounting practices. The partners realize a business is only as strong as its weakest link.

 

"This discovery came out of a 15-minute conversation," Taylor said. "We always look out for your best business interests — even if you are just hiring SPS for more routine services."

 

In this case, SPS did a thorough analysis of the client’s total overhead and saw immediately what they should be charging for services. "Now they’re getting smarter about bringing in the right type of jobs," he says. "Much more aware that senior editors can’t occupy all the technical resources"

 

What a difference SPS makes

SPS transcends the typical image of an accounting firm.

 

"We’re like a Fisher Price starter kit," he says. "As we discover areas that require expanded expertise, we leverage our knowledge base to fill that need."

 

This approach includes an entire gamut of responsibilities, from licensing and banking relationships to retirement planning and CRM.

 

"The depth of our firm allows us to offer much more than tax advice. There are many things that come into play," he says. "Businesses often come to us and want to discuss every part of their financial options. We like to be that first call. That’s good because we make things happen."