PREFERRED CFO

Through improved cost accounting and inventory management processes, DPS Skis has been empowered to make strategic decisions involving product introduction and retirement, fundraising, and manufacturing.

Accounting | Inventory Management Process Improvement
Product Cost Analysis | Budget to Actual Reporting

Situation

DPS Skis operated with an existing remote accounting team from its earlier days as a company. As the company grew and made a strategic decision to bring in-house some of its manufacturing, the complexity of its operations surpassed the accounting team’s skillset, resulting in poor inventory management, imprecise understanding of product costs, and delayed financial reporting.

Approach

1. Set up QuickBooks for manufacturing with a proper chart of accounts and detailed Bills of Materials for resource tracking and materials planning.
2. Implemented proper inventory control procedures and materials handling practices to better safeguard and track inventory from manufacturing to distribution worldwide.
3. Due to health issues of in-house accounting personnel, Preferred CFO was asked to provide team support for the entire accounting function.
4. Streamlined monthly closing process and budget review meetings have assisted the company in obtaining and utilizing accurate, timely financial reporting.
5. Developed and implemented a new production and sales forecasting model to improve the accuracy of production plans and product availability estimates.

Results

• Over the last two years DPS skis has grown its revenue approximately 49%.
• Improved relationship with and focus on independent commissioned sales representatives through more reliable product availability forecasts, commission reporting, and status updates.
• DPS enjoys the benefits of a fully staffed and well-trained accounting department of CFO, controller, accounting manager, bookkeeper, and clerks for the same price as they previously paid for part-time, remote assistance.