How a Vancouver Manufacturer & E-commerce Company Improved Cash Flow and Profitability

CASE STUDY

Background

The client had been experiencing strong revenue growth after years of losses but lacked structured financial management and accounting best practices. They were using QuickBooks Desktop and had an older bookkeeper. Additionally, they lacked executive-level financial guidance to help navigate the complexities of growth and financial stability.

A local Vancouver manufacturer, retail and e-commerce company with 50 staff, serving both the U.S. and Canadian markets. Purpose CPA provided Advisory, Technology Advisory, and Accounting & Tax Services over multiple years to support the client’s financial transformation.

Industry:

Manufacturing

Services Provided:

Accounting & Tax
Advisory
Technology

Challenges

  • Cash flow issues with growth – Shareholders were unable to provide more capital, and the business lacked access to financing.
  • Unfiled tax returns and lack of financial reporting – Multiple years of corporate tax returns were outstanding, and financial statements were incomplete.There was no regular review of financial statements.
  • Outdated accounting systems and practices – The company’s accounting system, staff, and business processes were not optimized for scalability.

The Solution

To help the client achieve financial stability and efficiency, Purpose CPA implemented a structured financial transformation plan:

  • Developed a work plan to close books and file multiple corporate tax returns – Trained the bookkeeper to prepare year-end working papers efficiently.
  • Guided the client in securing bank financing – Assisted in developing a financial strategy to access the best financing solution for long-term business growth.
  • Migrated from QuickBooks Desktop to QuickBooks Online – Enabled cloud accounting to improve automation, accuracy, and financial visibility.
  • Provided ongoing fractional CFO services – Improved financial best practices and helped build financial acumen across the organization.

Impact

  • Secured a $300K line of credit – Provided necessary working capital for seasonal business needs.
  • Improved cash flow by $200K and profitability by $200K – Enhanced financial performance through better management and strategic decision-making.
  • Saved significant staff time and improved financial best practices – Migrating to QuickBooks Online unlocked automation and efficiency in accounting operations. Bookkeeper receives regular feedback to improve efficiency and accuracy of work.

Conclusion

Through this transformation, the Manufacturer gained financial clarity, improved operational efficiency, and secured critical financing to support future growth.

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