A bakery near a busy intersection in a suburban high-income neighborhood was losing money. They had been through many changes and had seen several highs and lows of Houston’s economic cycles. The owners were true survivors, and over the years they had invested in several other related businesses.
But they were barely making payroll, and it was impossible to look at the books and know how much they were behind and which entity was causing the pain. They ended up with four different entities with co-mingled financial records in one set of books. A business owner’s nightmare.
They needed to understand what the profits and losses were for each entity and what products and services had the best and worst margins within each entity. Their goal was to keep the profitable ventures and sell the others. They needed to fine-tune operations to focus on the more profitable lines of business.
Imperial Cost Control efficiently broke out the transactions and cash flows in each business in order to set up separate financials. The bakery’s CFO could run financial statements for each entity and produce consolidated financial statements.
Imperial’s work allowed them to make informed decisions, and as a result, the owners kept three companies and sold the under-performing one. The bakery now has a recipe for profitability and is on a path for success.
