Case Study: Assurance Services with a Problem-Solving Mindset
Assurance services do not only add objectivity and credibility to your company’s financial picture they also add value through thoughtful advice and insight that can improve your business operations.
Business Need or Problem
During a GreerWalker review engagement, we noted a significant increase in insurance costs and overhead that were primarily attributed to one major contract (approx. 30% of annual revenues) and a decrease in overall profitability of the Company. Through discussion with the client, they determined they needed help putting together a P&L for this specific contract to see if/how much money they were making.
After the review, the client engaged GreerWalker to help them segregate all revenues and costs associated with this contract to help determine profitability. GreerWalker did an analysis and helped determine an accurate overhead rate to apply to the contract.
The Company realized they were now actually losing money on the contract. They submitted the analysis to the customer and had the contract re-negotiated to adjust for the increases in insurance costs and overhead.