CREATETV - HOW JFDI ADDED TREMENDOUS VALUE AND AIDED WITH A STRATEGIC ACQUISITION
JFDI was referred to Jonathan Strauss, CEO of CreateTV Inc., in July of 2015 through an individual who invested $2.25M into their company. After we sat down with Jonathan for the very first time we quickly realized that he was on to something epic and that we wanted to be a big part of it.
Although we were referred over to Jonathan, we were still complete strangers to him and one of the first things our team at JFDI focused on was building trust through frequent office visits, strategy meetings with the executive team and being highly responsive to all company related emails.
Once solid relationships were formed with CreateTV, we conducted an internal audit of the team and its process flows. The conclusion was that the CreateTV team was a highly intelligent, hardworking and overall awesome group of people that needed some guidance in the areas of Accounting and Finance. A few days later we created a comprehensive accounting handbook that included supporting flow charts, pictures and forms which were presented to the team during out next meeting.
The accounting handbook is still actively being used by them today and it has helped streamline many accounting processes.
JFDI continued to add value by creating a full bi-weekly Accounts Payables cycle while also setting up a semi-monthly payroll cycle. The bi-weekly AP cycle helped build solid relationships with vendors who now regularly receive their payments in a timely manner. As far as payroll is concerned, JFDI rolled out its cost effective solution and handled all employee onboarding, semi-monthly payroll processing, quarterly payroll tax form filings and year end W2 processing.
At the end of the day, the employees got paid regularly and now had someone they can go to for HR related issues which helped boost employee morale.
JFDI also took charge and revamped the artist royalty payout process which is the most critical business function for CreateTV. Since CreateTV represents a lot of major artists such as The Game, Wiz Khalifa, & Jacob Sartorius, we realized that getting artist’s payed out timely was extremely important. Once the new plan was formed and executed, we noticed that all of our artists, record labels, music managers and other customers became a lot happier which allowed us to continue to scale as our new artist sign ups grew month over month.
In addition to building the entire accounting and HR infrastructure, in December of 2015 JFDI led the way in a very important and strategic company acquisition of Label Engine Ltd by CreateTV. JFDI was tasked with conducting heavy financial due diligence on Label Engine while at the same time trying to reasonably place a value on their company. In addition to leading the accounting efforts, JFDI also coordinated all legal efforts with internal and external legal counsel. Lastly, JFDI worked with external CPA teams to formulate effective tax strategies for all parties involved in this transaction.
The end result is that CreateTV successfully closed the company acquisition deal quickly and accurately.
To sum things up, JFDI is still proud to be providing excellent and high quality services to CreateTV.
SHIRT WAS CASH - HOW JFDI SAVED OVER $100K AND HELPED MAXIMIZE GROSS PROFIT
JFDI Accountants was hired by Ardon Lukasiewicz, CEO of Shirt Was Cash LLC, in April of 2015. After our initial meeting with Ardon we validated his need for an accounting infrastructure and custom reporting that will scale alongside his revolutionary and expanding E-commerce business.
Early on we focused on building a solid accounting infrastructure from the ground up which consisted of performing month end closes, creating financial reports that were industry specific and distributing all reports in a timely manner. Also, JFDI laid out and managed all of the company’s payroll to support its rapid growth.
In addition, JFDI created a comprehensive KPI reporting package which helped identify a leak in the company. We discovered that the shipping fees being charged to the customers were too low especially considering that a good portion of the company sales were international. After careful planning, we altered the shipping rates which resulted in instant savings to the company. To date those savings are greater than $100,000.
Another area that JFDI Accountants focused on was analyzing vendor payments. After conducting an internal audit, JFDI discovered significant vendor overbillings which resulted in Shirt Was Cash overpayments. For example, with one specific vendor we found a $12k duplicate charge on one of the invoices. After our direct follow up with the vendor, we were able to validate our findings which resulted in a refund to Shirt Was Cash. To date, JFDI Accountants was able to recover over $30K in overbillings for the company.
Also through our routine bank reconciliations, we discovered that one of the merchant processors was not making payments to Shirt Was Cash. JFDI quickly created a detailed spreadsheet of all the transactions for which the company was not compensated for and worked directly with the merchant processor in recovering funds for Shirt Was Cash. At the end of the day, JFDI Accountants was able to recover over $15K of missing money.
To summarize, in addition to providing our core accounting & payroll services, JFDI Accountants was able to go above and beyond in helping Shirt Was Cash scale and grow its company while maximizing their profits. JFDI is still proud to be providing its top notch services to Shirt Was Cash.