Please note: The story below has content that predates SPS’s restructuring to an alternative practice structure. SPS is no longer a CPA firm. All attest services are now provided by SLTPB, LLP.
Transcending “just” tax advice, Sobul, Primes & Schenkel do so much more for their clients.
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 business areas. Indeed, the firm offers clients across-the-board financial services, 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
One client, a small post-production house, noticed lagging profits during a time when volume looked good on paper. The sales staff had outperformed expectations, signing up high-profile editing clients. Such notoriety, it was thought, was sure to beget more business.
So why were profits falling, they wondered? The answer came during a routine SPS visit, when they reviewed the company’s yearly tax return.
THE PROBLEM
Falling profits for a small post-production house when volume looked good on paper
SPS FOUND THE ANSWER
During a 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
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 need 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 consider 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 workstations, less-expensive associate editors could not 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, 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 at a profit in a couple of days.”
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 thoroughly analyzed the client’s total overhead and immediately saw what they should be charging for services. “Now they’re getting smarter about bringing in the right 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.”
