Services
Bookkeeping Case Studies
Kitchen Cabinet Distributor
Architectural Firm
Electrical Contractor
Architect
Painting Contractor
 
   

 
 
Case Study One - Kitchen Cabinet Distributor
  INDUSTRY Kitchen Cabinet Distributor
  LOCATION New Jersey
  SALES $3,000,000
SUMMARY OF CLIENT PROBLEMS
This firm had a part-time bookkeeping service that came to the office Monday and Tuesday of each week. This service cost over $25,000 per year and, since it was part-time, was always 60% behind because there were no entries on Wednesday, Thursday or Friday. The bookkeeping clerk spent most of the time "catching up" on the 60% of entries that were not entered the week before. The firm also experienced added time and expenses since payroll was not properly integrated within the system. This resulted in manually entering payroll data and unnecessary time and processing expense. Finally, since the books were never current, the owner could never receive timely financial statements that are needed to properly manage and monitor the firm's progress.
THE SOLUTION
Bookkeeping Management Administration is available on a full-time basis at less than the cost of a part-time bookkeeping clerk.  Their service brought the firm's books up-to-date and maintains them on a full-time basis.  All financial statements are sent to Bookkeeping Administration Management which eliminates paperwork "handling" by the firm.

The Bookkeeping Management Administratration's Payroll Service properly allocates payroll expenses between direct labor (as a cost of goods) and overhead wages, and the service prepares all payroll forms, payroll tax returns, and processes all tax payments.
 
Case Study Two - Architectural Firm
The firm's books were maintained by a part-time bookkeeping clerk for $27,000 per year.  There were substantial concerns regarding the accuracy of its accounting and bookkeeping, and the firm did not trust the results being generated.  A review of the firm's QuickBooks revealed substantial errors in the posting of its accounts receivables and accounts payables.  The invoices prepared in-house were inaccurate and inconsistent with each client's services.  Because of these errors, the firm had no idea of its profits or losses, constantly had a cash flow problem, and had no accurate information regarding the balance owed by its clients.

Bookkeeping Management Administration reviewed and restructured the firm's bookkeeping and accounts, set up a time tracking system to properly record time spent on each client by each architect, and set up a proper billing system and procedure.

Bookkeeping Management Administration receives all the firm's bills on a daily basis, accurately posts all bills to accounts payable, schedules all bills for payment, prepares and mails invoices to clients on a timely basis, prepares monthly statements for all open accounts on a timely basis, and receives, posts, and deposits funds received by the firm's clients.

The firm now has accurate and timely accounts receivable reports that have increased overall cash flow.  It also now has accurate and current profit and loss statements, has accurate and current balance sheets, and accurate and current information on time actually spent on each client's contract.
 
Case Study Three - Electrical Contractor
  INDUSTRY Electrical Contractor
  LOCATION New Jersey
  SALES $2,300,000
SUMMARY OF CLIENT PROBLEMS
The firm's office manager doubled as the firm's bookkeeping clerk, and the firm, in expansion mode, required a full-time project estimator.

Since the bookkeeping was done as an "afterthought," there were substantial accounting bookkeeping data entry errors and payroll was not being properly posted to the proper projects.  As a result, the firm suffered from numerous inaccuracies in its accounting, including profit and loss statements and balance sheets.

THE SOLUTION
Bookkeeping Management Administration took over the bookkeeping service for the firm "releasing" the office manager from this duty.

Payroll Service Management was implemented, including a time tracking system, and it properly allocated direct labor costs to each contract, eliminating the need for the basic bookkeeping. 

Since Bookkeeping Management Administration was able to provide all the bookkeeping service required by the firm and enable them to increase overall productivity, the firm's expenses were reduced resulting in increased profits.

 
Case Study Four - Architect
The principal of the firm was performing the bookkeeping services, and realized he did not have the time nor expertise to provide even the simple service required.

A review of the firm's QuickBooks indicated that the company did not provide any accurate data. The internal accounting, bookkeeping, accounts payable, and accounts receivable were not properly set up resulting in inaccurate information for the principal.

The firm did not have a proper system to track the time spent on client contracts and did not prepare nor process client invoices on a timely basis.

Bookkeeping Management Administration reviewed and restructured the bookkeeping and accounts for the firm and established an effective accounting bookkeeping data entry system.  It also implemented its Payroll Service Management to provide a complete payroll service that processes all payroll, prepares tax forms, deposits payroll taxes and prepares year-end forms for employees.

Bookkeeping Management Administration also implemented a time tracking system so time can be properly allocated to each contract to prepare and mail client invoices and statements on a timely and accurate basis.
Case Study Five - Painting Contractor
  INDUSTRY Painting Contractor
  LOCATION New York
  SALES $1,000,000
SUMMARY OF CLIENT PROBLEMS
The firm's office assistant was using QuickBooks for the payroll service, but the accounting bookkeeping payroll requirements were not integrated with Quickbooks and labor expenses were not properly posted.  The books were always behind, and the company's principal became very concerned that he could not get immediate and accurate information on the status of his business.  To make matters worse, the principal recently discovered that the office assistant had given herself an unauthorized raise.
THE SOLUTION
Bookkeeping Administration Management reviewed and properly structured the firm's bookkeeping and accounts and established effective and proper accounting bookkeeping data entry systems and procedures.  It implemented its Payroll Service Management that properly allocated direct labor and office wages to the proper categories.  It prepared balance sheets and profit-and-loss reports that the principal will have available as needed.  Since the firm's book keeping is now accurate and maintained on a continuing basis, the firm no longer needs to pay for the accountant to prepare quarterly reports.  Most importantly, Bookkeeping Administration Management does not sign checks and always verifies the firm's payroll and bills, ensuring the security and safety of the firm's funds.
 
Small Business Payroll Case Studies
Commercial Pool Supplier & Retailer
Medical Practice 1
Medical Practice 2
Contractor
Custom Manufacturer
 
  Request a call
 
 
Case Study One - Commercial Pool Supplier & Retailer
  Prior Company
ADP
  Number of Employees
60
  Payroll Frequency
Weekly
  Cost Per Year
$15,535.00
  States
3
  BMA Small Business Payroll cost
$1509.00
  Total Savings With BMA
$14,026.00
SUMMARY OF CLIENT PROBLEMS
This 60 employee firm was looking to reduce overhead and expenses in order to increase their net profit in a downturn economy.
THE SOLUTION
Bookkeeping Management Administration Small Business Payroll Processing Significantly reduced the clients payroll expenses by over $14,000.00 a year resulting in an instant gain to the net profits and freeing up cash.

 
Case Study Two - Medical Practice One

Outside of the significant savings provided by BMA Small Business Payroll Processing, A new client, a medical practice, who switched from PAYCHEX to BMA payroll recently faced a temporary cash shortage. As a result, the Principles were going to delay/forego their paychecks. .

Since BMA does not impound tax funds, the owners were advised that, since the taxes did not have to be paid for five more days, BMA could process their checks on time.  The firm would have the funds available in five days to pay the required taxes.  This could not be done with Paychex

 
Case Study Three - Medical Practice Two
  Prior Company
Priority Pay
  Number of Employees
4
  Payroll Frequency
Weekly
  Cost Per Year
$1,560
  States
1
  BMA Small Business Payroll cost
$840.00
  Total Savings With      BMA
$720.00
SUMMARY OF CLIENT PROBLEMS

FRAUD PROTECTION

A small medical practice with four employees recently contacted BMA because it received IRS notices of tax deficiencies for non payment of payroll taxes.  The firm was using a small payroll processing firm, the payroll firm impounded the taxes from the firm (withdrew the taxes from the firm's checking account and deposited them into its own checking/investment accounts), the payroll firm did not pay the required taxes to the IRS.  The amount of taxes not paid exceeded $10,000.  Even though the medical practice did provide the tax money to the payroll firm but the taxes were not paid to the IRS the medical practice is still responsible to pay those taxes plus penalties and interest.  The practice is now out the $10,000 it paid the payroll firm plus the additional $10,000 plus penalties and interest it must now pay to the IRS.  Since it takes about one year before the IRS discovers non payment of taxes the medical practice had no idea its taxes were not being paid as required. 

 

THE SOLUTION

Since BMA does not tax impound and all funds remain in the clients account and under the client's control, such tax fraud cannot occur. Furthermore, all disbursements from the company bank account, are clearly marked on the bank statement.  All funds can be reconciled and every penny accounted for.

 

 
Case Study Four - Contractor

A subsidiary of a larger company under it's own EIN number was concerned with the large per payroll cost for payroll processing for a one person payroll.

Bookkeeping Management Administration Small Business Payroll processing greatly reduced their per payroll cost increasing their cash flow and net profits
 
Case Study Five - Custom Manufacturer
  Prior Company
Leasing Company
  Number of Employees
19
  Payroll Frequency
Weekly
  Cost Per Year
$15,600.00
  States
1
  BMA Small Business Payroll cost
$3,000.00
  Total Savings With BMA
$12,600.00
SUMMARY OF CLIENT PROBLEMS
The client was using an employee leasing company that was charging enormous administrative fees.  The cost of these fees far outweighed the savings they were receiving on workman's comp rates that start out very low and gradually increase over time when using a leasing company.
THE SOLUTION
BMA Small Business Payroll Processing reduce client payroll fees significantly and also reduced the clients workman's comp with our pay as you go workman's comp program. Since workmans comp fees are mandated by the state, there was no reason not to take advantage of the siginifcant savings and additional security.  The clients net profits and cash flow were increased.  As a result of the savings the firm invested in equipment it could not previously afford.
 
 
 
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Have you reviewed your payroll service provider?

The big three payroll processing and tax filing companies are quite expensive and charge extra  for preparing quarterly tax forms, for preparing employee W2's at year end, for direct deposit, for copies, for online check stub view, for making corrections, AND, they impound your money days, weeks or months in advance of when payroll and taxs need to be filed with your employees and the taxing authorities, earning interest on their customers' combined billions of dollars until taxes are actually due.

 
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Bookkeeping Management Administration, 760 Vanessa Lane, Neshanic Station, NJ 08853, Phone: (908) 369-6843, Fax: (908) 369-9449