Elevating Financial Readiness for Growth and M&A For Fast Growing Digital Art Studio
Overview
A fast-growing digital art studio specializing in high-end asset creation for top-tier video game developers faced increasing financial complexity as it scaled. With a rapidly expanding team and evolving operational needs, the studio recognized the importance of strengthening its financial infrastructure. To support compliance requirements and strategically position itself for potential merger and acquisition (M&A) opportunities, the company sought expert financial guidance and accounting support.
Challenges
Approach and Strategy
Phase 1: Discovery and Initial File Review
- Conducted a comprehensive analysis of the QuickBooks file.
- Identified misclassifications, negative accounts, and inconsistencies.
- Provided a detailed report including action items.
Phase 2: File Cleanup and Restructuring
- Restructured the chart of accounts, moving labor costs to cost of goods sold.
- Cleaned up AR balances and reconciled bank statements.
- Aligned profit and loss statements with tax filings.
- Recommended archiving inactive customer records.
Phase 3: Tax Tie-Out and System Upgrade
- Performed a tax tie-out to match QuickBooks with the 2023 tax return.
- Recommended and implemented the QuickBooks 2024 upgrade.
- Introduced structured document sharing for bank statements and AR support.
Phase 4: Monthly Workflow Implementation
- Designed a repeatable monthly process:
- Company finalizes entries by the 3rd of each month.
- Fourlane completes reviews and adjustments within 3 business days.
- Initiated ongoing accounting services, including AP/AR auditing, bank reconciliation, and credit card transactions.
Phase 5: Reporting and Advisory
- Enhanced financial reporting: 12-week cash flow forecasting and custom scorecards.
- Set up fixed asset tracking and depreciation schedules in QuickBooks.
Outcomes and Results
Milestone | Outcome |
QuickBooks File Cleanup | Completed within 1-2 weeks with full AR and balance sheet reconciliation. |
Chart of Accounts Restructuring | Implemented successfully, improving report clarity and tax alignment. |
Monthly Accounting Workflow | Launched with clear roles, timeline, and deliverables. |
Version Upgrade | QuickBooks Enterprise 2024 adopted with stable performance. |
Bookkeeping | Finalized workflow transition staff under project manager oversight. Performing ongoing services to team. |
M&A and Tax Prep Readiness | Financials aligned with tax returns and investor-ready reports in progress. |
Conclusion
Fourlane’s partnership with this company showcases a robust and collaborative approach to financial system transformation. From diagnosing deep-rooted discrepancies to implementing scalable workflows and preparing for future growth, Fourlane positioned the company for long-term financial clarity and operational efficiency. Their hands-on consulting model, technical QuickBooks expertise, and tailored monthly process have set the foundation for a streamlined, investor-ready accounting environment.
Fourlane Is Here To Help
If you’re looking for powerful solutions to your business’ needs, reach out to us by email, or call us at 1-800-931-2120. We’d love to help you navigate any challenges and grow your business.
