Key outcomes
- Three state operations consolidated into one monthly close
- Profitability visible by state and by service line for the first time
- Close completed by business day 7 (previously day 25+)
- Repriced two service lines and exited one state market based on the new data
The challenge
The company had grown by replicating its model in adjacent states. Each state had its own LLC, its own local controller-style hire, and its own version of QuickBooks Online. The Plano headquarters received three monthly P&Ls — usually late, never reconciled to each other, and consistently telling slightly different stories about how the business was actually performing.
The founder couldn't answer basic questions: which state was actually most profitable? Which service line was margin-positive after fully-loaded costs? Should we hire in Phoenix or Tulsa next quarter? The data existed in three different shapes; the answers didn't exist anywhere.
Our approach
We treated the engagement as a consolidation project first and a bookkeeping project second.
Quarter 1 — Standardize. Aligned all three entities on one chart of accounts, one revenue recognition policy, and one service-line tagging convention. Migrated each state into a centralized bookkeeping ecosystem with a single close calendar.
Quarter 2 — Consolidate and report. Built a monthly consolidated P&L sliced both ways: by state (so the founder could see geographic performance) and by service line (so he could see product economics). Layered a fully-loaded margin view that allocated headquarters overhead back to each state and service line on a defensible basis.
A controller now reviews every state's monthly close before the consolidation runs. The founder gets one package by business day 8 — not three packages spread across two weeks.
The outcome
Two consequential decisions came out of the new visibility within the first six months. First, one of the three service lines — which had appeared marginally profitable in the unallocated view — was actually losing money in two of the three states once headquarters overhead was distributed. The company repriced it across the board and exited one state-level offering entirely. Second, a planned headcount expansion in the lowest-margin state was deferred and reallocated to the strongest market.
Close timing went from day 25+ to day 7. The founder's quarterly board calls — previously a scramble to assemble the latest numbers — now run from a static package delivered on a known date. The state-level controllers, who had been reactive firefighters, now run a tight close cadence with central oversight.