Case Study: Crandell Theatre

Outstanding Results

• Able to present accurate and complete representations of finances in a timely manner

• Monthly conversion to full accrual-based statements provides more accurate financial information for decision-making

• Step-by-step procedures ensure correct reconciliation

• Gained confidence that BST Consulting Group will continue to recommend new technology to streamline processes and increase transparency

Challenges

Lacking Financial Accuracy to Support Informed Decisions

This not-for-profit client had a small office staff, a Board of Directors, and several committees including an executive committee and a finance committee. The organization had previously been using a part-time bookkeeper to handle the accounting each month. Upon embarking on a capital campaign, the bookkeeper was unable to maintain the autonomy needed between the operating funds and the capital campaign funds.  Additionally, the bookkeeper was not able to produce ad hoc reports and metrics for the leadership team to utilize in measuring the performance of the organization to make decisions.  Finally, many items were not recorded correctly, from payroll costs to year-end prepaids and accruals. 

Solutions

Strengthening Accuracy, Automation, and Reporting for Stability

BST Consulting Group focused on three main areas: accuracy of reporting, automation of processes, and enhanced reporting.

Accuracy of Reporting: Following standard processes we reviewed all monthly reporting and created an efficient reconciliation process for each balance sheet account, a monthly sales tax reporting calculation, and a process to identify and correctly reflect prepaid expense items. We obtained fixed asset schedules to record deprecation monthly and completed a monthly reconciliation of capital campaign, including providing a recommended transfer amount to the client for any funds due between operating and capital banking accounts. Finally, we documented processes that have been sustainable with no interruption in service or accuracy during staffing transitions.

Automation of Processes: We implemented a virtual accounts payable solution to streamline the bill payment processes for the client.  The software codes all bills on a weekly basis and pays electronically with the client's approval, allowing for easy-to-access electronic storage and faster bill payment.

Enhanced Reporting: The organization had previously paid an outside contractor to create an Excel template for reporting.  This required constant manual maintenance and had several manual steps that the internal team members were not proficient in completing. BST Consulting Group’s reporting and dashboard tool provided accurate reporting within minutes, in both visual tools that can easily highlight trends as well as in more traditional accounting report style.

Results

Gained Confidence Through Accurate, Timely Financial Insight

The organization is now able to present accurate and complete representations of their finances in a timely manner.  Converting  to  full accrual-based statements each month allows for decision-making to be made with more accurate financial information. Step-by-step procedures ensure correct reconciliation. Most importantly, the organization gained confidence in knowing that BST Consulting Group would continue to recommend new technology to further streamline or add greater transparency, as it became available.