Customer Case Study: Outsourced Accounting Doubles Revenue

Business Background

For nearly 20 years, Chief of Staff has been a leader in hospitality staffing. The company recruits and places food service personnel for some of New England’s most prominent casinos, ballparks, concert venues, universities, hotels, and hospitals.

For their clients, they manage all employee background and reference checks and on-the-job training and cover employee payroll, taxes, and fees, including liability and worker’s compensation – providing hassle-free, on-demand food service staffing for their clients.

We quickly realized we could outsource all of our accounting needs so we wouldn’t have to increase our employee overhead and we would get access to an entire team of seasoned accounting professionals.

The Challenge

From 2005 to 2017, the co-owners of Chief of Staff struggled to manage business development tasks and the day-to-day operation of the business as well as the organization’s complex accounting needs – from weekly employee payroll, accounts payable, and receivable to state and federal tax filings.

A crack in the company’s foundation came to light when co-owner Bruce Hafford attempted to apply for a government contract through the GSA purchasing program. “To apply, we needed to provide a comprehensive profit and loss (P&L) statement, explained Bruce, “And when we gave them what we had, government administrators basically laughed and said, ‘Yeah, this isn’t going to cut it.”

The Solution

“We realized we needed help so we were looking to hire an accountant when we came across the team at ARI,” said Bruce. “We quickly realized we could outsource all of our accounting needs so we wouldn’t have to increase our employee overhead and we would get access to an entire team of seasoned accounting professionals. ARI not only got our books in order in no time so we could offer prospective clients a professional set of financials, they also resolved a lingering state sales tax issue so my partner and I could sleep better at night.”

Within two years of outsourcing to ARI, business was booming and our revenue more than doubled.

More Time to Focus on the Business

“Now that we no longer had to spend time cutting checks and balancing accounts, we had a lot more time to focus on the business. Within two years of outsourcing to ARI, business was booming and our revenue more than doubled. But then COVID hit, and it completely gutted our business.”

Help Navigating Business Downturns

“The second quarter of the year is always the busiest time for us with commencement events. All of that dried up overnight. We were staring down the barrel at no cash and were at a loss of what to do.

The team at ARI knew exactly what to do and jumped right in. Because they had our financials at their fingertips, they were able to apply for loans immediately. We applied for and received a bridge loan from the Department of Economic Community Development’s Small Business Loan Program at no interest for 18 months; and two rounds of PPP (Paycheck Protection Program) loans that totaled $1.8 million – 100 percent of which we applied to employee payroll. This enabled us to continue to pay our employees during the worst of the pandemic.

Now that we no longer had to spend time cutting checks and balancing accounts, we had a lot more time to focus on the business.

As things started to recover, we launched back into successful territory because we were able to keep our core team of employees together and retain their many years of experience. Today, our new employees can learn from our seasoned employees and that’s a huge factor in our ability to grow.”

Summary

Outsourcing accounting enabled Chief of Staff to streamline operations, improve financial reporting, and focus on growth, ultimately doubling revenue. During downturns, having accurate financials allowed them to secure critical funding and maintain business continuity.

FAQs

How can outsourced accounting help improve business growth?

Outsourced accounting drives business growth by providing access to specialized financial expertise, enabling strategic decision-making and reducing operational costs. By delegating bookkeeping, payroll, and compliance to experts, business owners save time (up to 9 hours/week) and gain access to advanced, automated technology, allowing them to refocus on core activities like product development, customer acquisition and scaling operations. 

What challenges can outsourcing accounting solve for growing businesses?

Outsourced accounting can easily scale up or down based on a company’s growth, seasonal demands, or changing needs, offering flexibility that in-house teams often cannot. It also provides access to professional accountants and CFO-level experts, enabling better financial planning, cash flow management, and timely decision-making without the high cost of full-time senior hires.

How does outsourced accounting support financial reporting and compliance?

Outsourced accounting strengthens financial reporting and compliance by providing expert, GAAP-compliant, and audit-ready records, often accelerating the month-end close process. These services use advanced, secure, cloud-based technology to enhance data accuracy and ensure up-to-date compliance with evolving regulations, reducing penalties and improving financial transparency.

Can outsourcing accounting help businesses navigate economic downturns?

Outsourcing your accounting function turns fixed labor costs into variable costs, providing necessary agility when revenues are unstable. Also, by outsourcing routine accounting tasks, internal teams can focus on essential revenue-producing operations, such as sales and marketing. It also allows businesses to quickly adjust employee levels to match need, without the burden of layoffs or rehiring.

What are the long-term benefits of outsourcing accounting services?

Long-term outsourcing of accounting services provides cost savings, access to CFO-level financial experts, improved compliance and increased operational efficiency. By reducing overhead costs like payroll taxes and training, businesses can reallocate resources toward growth while leveraging specialized, up-to-date technology and expert insights for better financial decision-making.