ABOUT THE CLIENT
The client had been operating successfully for over a decade. With multiple locations and a strong customer base, they faced complex financial operations and intricate tax compliance requirements. The client required an accounting firm with specialized expertise in the car wash industry to navigate the ever-changing tax landscape and maximize their financial efficiency.
THE NEED
- Tax Efficiency: The client was looking to minimize tax liability while ensuring full compliance with state and federal regulations.
- Financial Reporting: Accurate and timely financial statements were crucial for obtaining financing and making informed business decisions.
- Multi-Location Complexity: Managing multiple car wash locations led to intricate financial operations and reporting challenges.
THE CHALLENGE
The primary challenge faced by our firm was the complex nature of the client’s operations. Managing multiple locations required a deep understanding of the car wash industry and expertise in tax planning specific to this sector. Additionally, the client’s previous accounting practices were outdated, leading to potential inaccuracies in their financial records.
THE GOAL
AGP’s objective to thoroughly understand the challenge was accomplished by executing the subsequent steps as potential remedies:
- Provide tailored tax planning and compliance services to minimize the client’s tax liability.
- Streamline the financial reporting processes, by wash location, for improved decision-making and financing opportunities.
- Implement advanced accounting technology to enhance efficiency and accuracy.
THE PROCESS
- Initial Assessment: Our team conducted a thorough analysis of the client’s financial records, assessing their current tax strategy and identifying areas for improvement.
- Industry-Specific Expertise: We dedicated resources to gain a deep understanding of the car wash industry,
enabling us to provide specialized tax advice and solutions. - A Collaborative Approach: Engrained in our culture is a collaborative nature in everything we do. This was applied directly to this client situation in which this was not an “owner only matter”. Rather, AGP took the initiative to get others involved – individuals like their accounting bookkeeper, their wealth advisor, and even their former CPA. This collaborative approach ensured a more holistic and diverse approach that returned better and faster results.
- Regular Communication: Open and consistent communication with the client ensured that we remained aligned with their business goals and objectives.
THE SOLUTION
- Client Focus: AGP is always focused on delivering a high-touch experience for our clients. Through this experience, the Owner was grateful for the experience and was receiving a level of value that he or his team had not received before. The owner was so appreciative of the 1:1 time AGP took to review their financials, explain why he was now saving more due to a customized tax strategy, and truly be a business advisor to their business.
- Tailored Tax Planning: By leveraging our industry-specific expertise, we identified opportunities for tax credits and deductions unique to the car wash industry. This resulted in a significant reduction in the client’s overall tax liability while maintaining full compliance with all regulations.
- Streamlined Financial Reporting: By having a dedicated team with car wash industry expertise, we were able to enhance their financial reporting abilities by the creation of ‘by wash location’ financials. This financial enhancement provided the client with timely and accurate insights, enabling them to make informed business decisions and secure financing when needed.
- A True Business Advisor: Our firm continues to provide regular tax planning and compliance services, ensuring the client remains up-to-date with the latest tax laws and regulations. More importantly, we now know their business and their specific business goals. That time investment yielded a great workshop session on exploring potential exit strategies. This allowed our AGP Tax and Exit Planning specialist to craft multiple scenarios of “how” and “when” they might exit the business and the financial impact of those decisions. This business advisor approach has strengthened the client’s position and strategic mindset as they look at the next chapter of growth for their carwash.
The client experienced a substantial reduction in their tax liability to the tune of almost six figures. With
streamlined financial reporting processes in place, they were able to secure financing for expansion projects, further solidifying their position in the car wash industry.
AGP’s ongoing support continues to provide the client with confidence and peace of mind in their financial operations.