A property management firm responsible for 60 properties with more than 15,000 units for various owners.
This management firm had $5.5 million in annual revenues and knew its profitability wasn’t where it needed to be.
After some analysis, they realized they were spending more than $2.1 million for their accounting department, ERP/accounting software and other back office costs. The 20-person accounting department was a loss leader and not managed effectively. Staffing issues were a consistent challenge with a high turnover and regular discord among staff members.
After Ascent was retained to manage all of the firm’s accounting processes, it was able to reduce all but the CFO and two accounting staff members and significantly downsize office space and management/oversight for the department. The firm saved significantly by outsourcing their accounting services with Ascent. It saved $1.25 million of its previous $1.6 million annual staffing fees, $270,000 in reduced office space expenses and $250,000 in miscellaneous operating expenses. With Ascent’s accounting services, the firm had a net annual savings of more than $750,000.
Ascent helped this large property management firm experience immediate savings and profitability by outsourcing its accounting. The firm’s profitability more than doubled, increasing by more than 13 percent the first year alone.