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“There are thousands of CPA and bookkeeping services on the market, but Ledger Solutions is the only one I know of that can give me real-time access to business information, plus CFO advice when I need it, all for the price of a "stack-em and batch'em" bookkeeper.”
Jim Carter, Owner
Windfern Business Park
- Industry: Commercial Real Estate, Truck Leasing and Finance
- Annual Revenue Growth: 17%
- Number of Employees: 1
Client has five different corporations, needs control and convenience.
Ledger Solutions came to straighten out a business crisis - and stayed to help the business grow.
- Defined exit route from traditional trucking company
- Reduced financing costs by 17%
- Provided financing that will fund future growth that could double the revenues in 24 months
- Structured tax free exchange of property
- Prepared and implemented a corporate restructuring that will save $100's of thousands in taxes
Company Overview
Jim Carter develops and operates commercial real estate in Northwest Houston. Jim lives and works about 50 miles from his holdings across congested Houston, Texas. Jims' businesses include:
- Windfern Office Park is a 10-acre warehouse/office complex with 40,000 s.f. of space. Jim plans to expand to 80,000 s.f. in the next 12 to 18 months
- Jones Road Professional Building, a 15,000 s.f. medical office building.
- C&C Transport and related companies, originally a conventional trucking firm.
Jim has evolved his enterprise from C&C Transport into real estate leasing and development as well as financing and leasing for 18-wheeler trucks.
Business Challenge
Jim started using Ledger Solutions when he needed to solve a business crisis at C&C Transport; a problem that resulted from an unqualified bookkeeper and a dishonest partner. Ledger did such a good job in putting him on an even keel that Jim brought them into the rest of his multi-company empire.
Mr. Carter's real challenge was that he needed more day-to-day control over his companies - and more real-time information - than he could get through a conventional once-monthly bookkeeper. Jim was looking for someone who could act as senior advisor, Controller and CFO. What he needed was the power of a Corporate Accounting department without the expense of full-time staff.
Moreover, as a hands-on manager who works from a home office and lives a long way from his holdings. Jim had to have anywhere/anytime access to his Accounting information.
Solution
With that in mind, Ledger Solutions moved Jim from "batch mode" to LedgerKeeper™. "I get all of my business mail at a post office box close to my home.
I read the bills and statements, enter them into QuickBooks, generate checks, and upload the documents into LedgerKeeper™. This way, I keep my finger on what's going on in my businesses." At the same time, Carol, the Ledger bookkeeper who has worked with Jim through the entire transition, monitors the books, generates monthly invoices and payments, and ensures that Jim's entries are correct. "I can use part of QuickBooks, but Carol makes my life easy because she sets it up so I can print the invoices, checks, etc. If I didn't have the service, I'd have to have a full-time accountant."
Ledger Solutions goes further, providing LedgerControl™ and LedgerCFO™ services. "Roy's my virtual CFO. He helps me with business decisions - like whether to take ownership of a truck from a C&C customer in lieu of his debt - which gives me peace of mind that I'm doing the right thing for the long term. Roy knows my businesses inside and out, and can give me the right perspective on tax implications, financing decisions, and even estate planning."
For example, when Jim needs to investigate financing for another real estate development, not only does he get guidance from Ledger on rates, business structures and return on investment, but he and Ledger can generate the necessary statements for the bank at a moment's notice.
Results
Convenience, Peace of Mind and a Foundation for Growth!
With Ledger Solutions help, Jim Carter has seen the following results:
- 17% drop in interest rates through getting control of financial information, introducing him to banks that best fit his businesses needs, and negotiating very favorable financing terms.
- Positioned Windfern Office Park to add 3-4 new buildings in the next 12-24 months, which will double its leasing capacity and value.
- Organized the corporate restructure, with the help of an attorney/estate planner, to minimize estate taxes for Jim's heirs.
Ledger Solutions also benefits Mr. Carter in less concrete ways. "Strategically, I should talk about the fact that I get uninterrupted control over my businesses, because Ledger has my books Web-enabled, and I can communicate with the firm on a daily basis. But really, what I like best, day-to-day, is the convenience. I'm sitting here in my study, looking out the window at the boats in the marina, and at the same time I'm taking care of business."
©2005 Ledger Solutions, Inc. All rights reserved. This case study is for informational purposes only. JDH Business Systems MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Ledger Solutions, LedgerKeeper™, LedgerControl™ and LedgerCFO™ are registered trademarks of Ledger Solutions, Inc. in the United States. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.