Case Study

Consumer Choice Award cuts cost of bookkeeping by 75 percent 

Consumer Choice Award – which recognizes outstanding small- and medium-sized businesses across Canada – counts on Scalability to deliver expert bookkeeping and accounting services. After the firm switched from an in-house accountant to Scalability, it reduced accounting and finance costs by a stunning 75 percent.

 “We hired Scalability in 2015 and a day doesn’t go by without me celebrating that decision,” says President Jack McFadden.

The Company
Consumer Choice Award uses independent research to select one top-ranked business per category in 28 cities across Canada. It then helps the winners grow by providing cutting edge marketing initiatives. The Toronto-based firm has annual revenues of several million dollars and employs about 20 people.

The Problem
Previously, the company employed an internal accountant. However, it went through three different people in the position in as many years. The firm was paying a substantial salary and benefits for a professional accountant – even though a lot of the work was basic bookkeeping. McFadden is a marketing expert, not an accountant, and felt uncomfortable managing and questioning the person in the role.

The Solution
Consumer Choice decided to outsource its bookkeeping and accounting, choosing Scalability for the task. In addition to bookkeeping, Scalability is responsible for:

·       Managing invoicing, accounts receivable and accounts payable

·       Remitting payroll, sales and income taxes

·       Reporting monthly financials

·       Providing expert accounting advice

The Result
“Consumer Choice Award’s internal accounting resource was not providing nearly the value that Scalability does,” Jack says. “We would never, ever go back to accounting using internal staff.”

Some of the gains include:

·       Cut internal accounting and finance headcount by 100 percent

·       Slashed accounting and finance costs by 75 percent

·       Repurposed the accountant’s office and file storage area into space for the sales team   

·       Dramatically lowered receivables and days outstanding

·       Transitioned accounting to 100 percent cloud-based, allowing managers to access data 24/7 from anywhere in the world

·       Eliminated paper costs since accounting is now 100 percent digital

As well, Consumer Choice Award now has the ability to increase or trim Scalability’s services as revenues fluctuate.

“It is somewhat counterintuitive, but outsourcing our accounting gave us greater control of all aspects of our business,” Jack says. “I highly recommend Scalability for your accounting needs.”

To learn more about how Scalability can help your organization achieve its goals, please contact us for a free consultation.