Fit for growth: Fitness industry entrepreneur saves time to focus on business strategy with outsourced accounting and HR

Client background

The client is a visionary entrepreneur who began with a YouTube channel, a small gym and a dream to help others on their fitness journey. After quickly establishing his brand through strategic use of social media, he continued branching into other related ventures. The client now owns multiple operating entities in the fitness industry, including a men’s and women’s athletic wear company and has even expanded operations internationally.

Business challenge

The client originally engaged with Baker Tilly for tax services, and as his company continued to expand nationally and overseas, received additional support with state and international taxes. But as business needs grew more complex, it became clear that back-office operations, from accounting to human resources (HR), were hindering further growth.

The client’s accounting staff didn’t have experience in preparing accurate financial statements and there was high turnover in the department. The client’s multiple companies used separate technology solutions, which kept data decentralized and limited financial insights for leadership. The company’s HR department faced similar challenges with underqualified staff who lacked the expertise to be effective in their roles as well as an inefficient payroll system that further complicated matters. Additionally, the absence of a formal hierarchy and reporting structure led to communication and interpersonal issues that leadership was spending time resolving.

Rather than focusing on strategy and vision, managing these operational challenges took the bulk of the client’s valuable time. To optimize financial and payroll processes, as well as solve the HR challenges, the client chose to further engage with Baker Tilly and our outsourced accounting, payroll and HR services.

Our solution

Outsourced accounting with Baker Tilly's client accounting services (CAS) team

Baker Tilly’s CAS team began the engagement by analyzing the client’s current systems. After identifying several inefficiencies and knowledge gaps, it was determined that a new accounts payable (AP) process and workflows were needed. Our CAS professionals:

• Implemented more suitable technology solutions for both AP and expense management.
• Created a new company credit card system with clear protocols for expense approval, which had not previously existed, giving employees a better understanding of expense expectations and gave leadership accurate visibility into expenditures.
• Consolidated reporting to show all business dealings, since intercompany transactions were very common.

Baker Tilly worked diligently to streamline accounting processes, establish efficient workflows and bring consistency to financial operations across the client’s businesses.

The impact of services was profound. The consolidated reporting now ensured that intercompany transactions were properly accounted for and provided the client with reliable and accessible financial data. Transparency into expenditures improved budget planning and provided insights for more cost-effective decision making.

Outsourced HR and payroll by Baker Tilly Vantagen

As the CAS team got to work, they recommended Baker Tilly Vantagen to the client to provide outsourced HR and payroll services. The Baker Tilly Vantagen team quickly identified several areas of improvement that aligned with the work the CAS team was undertaking, including:

• Defining an organizational structure, HR handbook and HR policies: Baker Tilly Vantagen helped the client understand how different organizational structures operate, as well as which structure would be best for his organization. Additionally, the development of an HR handbook and policies, including clear performance review criteria, ensured consistency across the organization.
• Centralizing payroll: Before Baker Tilly stepped in, payroll had been spread across several different payroll platforms. The Baker Tilly team moved payroll to a centralized technology, which streamlined workflow while ensuring compliance domestically and internationally.
• Implementing best practices for hiring employees: Once the organizational structure was set, job descriptions were created for unique positions, along with salary bands and an authorization hierarchy to give clarity to hiring managers about budget and expectations.

Results

Prior to Baker Tilly’s engagement with the client, the operational workflows, staffing and technology challenges were drawing the client’s focus away from work the owner was most passionate about. Now, with a more accurate, streamlined and transparent accounting and payroll system across his companies, the client has regained more of his most valued asset — his time.

Without the operational burden of unreliable accounting processes, limited technology solutions and communication challenges, the company became stronger. Employees now have clearer lines of communication and accountability, improving people operations, while leadership now has the financial and operational data they need to focus on strategy and expansion.

The client also appreciates the freedom to pivot focus from business to business and pursue new opportunities as they arise. This was top of mind as Baker Tilly consolidated financial reporting, ensuring accurate expensing and insights, undisrupted by strategic changes.

Over the course of the engagement, the client has seen dramatic revenue growth and has been able to focus on the successful development of a new, multi-facility gym and café on more than 18 acres of land. By redesigning the financial and HR operational workflows and implementing best practices in financial reporting and HR, our solutions enabled the client to dedicate his energy to fulfilling his entrepreneurial vision without worry about his back-office operations.