The Challenge: MACH III had all their own information in QuickBooks and was outsourcing their accounting while only having one annual meeting. As a result of infrequent communication with their accountant, the end of the year review would consist of “huge lists of general adjustments to make the books correct.”
In addition to the cloudiness of understanding their current accounting circumstance, inventory was being accounted for manually. There was no system in place that could calculate the value on their projects. Having only the ability to approximate the cost associated with the manufacturing of their product led back to the complications in the annual accounting review. Profits were occurring but under the scope of “guesswork.”
What was your company life in general all in composing before working with MACKEY.
We are a family own and run company. I am the third generation to be in involved. When I stared with Mach III 26 years ago, everything was still on paper. We didn’t have a computer-based operating system.
It was 2006 when I talked to Mackey and we decided to make the change and get involved with MACKEY
We had all the data in QuickBooks. We were tracking all our data that way but only meeting with our accountants at the end of the year for tax prep. We had all these numbers, but nothing really meant anything. We were also still a C corporation and still did things like bonuses. Our accounts would have to make these huge lists of general adjustments to make our books correct at the end of the year.
The other piece of it was we were calculating our inventory manually. We didn’t have a system in place to place value on our projects. The result is that we’ve become more profitable because we have all the data we need to accurately price things. We only had an approximation of making our product. We were okay and profitable but at the end of the day was that it was guess work. We had all of the data but we weren’t utilizing it well.
The biggest shift right away after working with MACKEY was that we switched to quarterly reviews. After some time, we started to get our book correct upfront instead of waiting until the end of the year. What ultimately happened was that at any time we could go into our books and everything would be correct. That was the biggest helpful piece in the beginning.
Natalie did a great deal of education for us. Once we had all the pieces in place, we were able to start improving things. By 2008 we were able to confidently build and move into our new facility because we knew we could afford it. Shortly after we invested in an ERP system so that knew the exact cost of manufacturing and exact inventory available. This led to us being much more profitable.
With Mackey’s guidance we changed from a C Corp to a S Corp and in doing so our tax burden went down because of that. I think that our work with MACKEY is like having another member of our team. They were instrumental to getting us to where we are now. We have pretty much doubled our bottom-line profit In the last decade.
A: How would you describe your business now? Before and after in general?
Before, Controlled Chaos. Now, a well-oiled machine
Do you have any advice or thoughts for business owners that might be in a similar position to where you began working with MACKEY?
I would say that if you are trying to sleep better at night, having your accounting in order is directly correlated to that. MACKEY is a resource you can trust because they don’t just come in and make changes, they help you understand the why behind the things that need to be done in your accounting systems.
I probably use to work 70 hours a week. Getting everything in order allows you to hand it off to someone else. When its that controlled chaos where you know the process, you can hand that off to someone else.
If you are ever going to get free from all those millions of little tasks that accounting takes up in your world, working with MACKEY can completely take over that piece of it for you and then you’re free to do the things you are truly passionate about. And then the IRS wont be knocking at your door!