As with many of our clients, a referral brought a government contractor to Lanigan Ryan with a request for accounting assistance. They had recently acquired the 8(a) status (a business development program by the Small Business Administration) and were a bit lost when it came to compliance with the program’s reporting requirements on revenue and expenses. Their former accountant, a sole proprietor, was no longer able to fulfill the client’s growing industry-specific needs.
After identifying the root of the contractor’s concerns and ways to address them, we sought to educate the owner on how these program requirements (and a good accounting system) were an essential management tool that could facilitate their understanding and the growth of their business.
Starting with the balance sheet that did not balance, our team formed a strategy to increase training and enable the proper bookkeeping setup. We trained the contractor on proper use of QuickBooks and other accounting issues, and in doing so, opened the owner’s eyes to the necessity of building an in-house accounting team that would allow the owner to focus on the operations of the business. On our recommendation, the contractor hired an internal bookkeeper to keep the new procedures in place.
Although hesitant at first to act on the implementation of such significant changes, the contractor quickly saw the value of Lanigan Ryan’s approach.
Not only has their relationship with Lanigan Ryan grown, but their business has too – from a $2 Million company when we first met to now over $22 Million. They went from having the owner managing the books themself to having a self-sufficient two-person in-house accounting department.
Following the setup of the new department, Lanigan Ryan was able to further assist the contractor in the development and placement of safeguards that allowed them to graduate out of the 8(a) program and establish a new line of credit. The provided support allowed them to diversify their client base and utilize the accounting team to help them bid more profitably on contracts with new customers, and ultimately, thrive without reliance on 8(a) program assistance.