Business Management Company, Inc.

BACKGROUND

Introduce your business and what you do there.

I’m the president of New North.

OPPORTUNITY / CHALLENGE

What challenge were you trying to address with Business Management Company?

We needed expertise when it came to payroll, tax preparation, and general business consulting as we grew as a company. When I started New North, I did all the books. As soon as I hired one employee, I realized that I didn’t want to do payroll so I hired an accountant. She was more personal tax-oriented and didn’t understand the business side. That’s when I reached out to Business Management Company.

SOLUTION

What was the scope of their involvement?

They do all of our business tax preparation as well as my personal taxes. Their team also manages all of our payroll and tax payments for our employees. We have an in-house bookkeeper, but Business Management Company does quarterly reconciliations of our books, double-checking our profits. 

I meet with Brett (President & CEO, Business Management Company) annually or every two years to discuss strategic issues concerning the growth and finances of the business. He’s helped with the structuring and paperwork for other businesses I’ve started.

Although we have a part-time bookkeeper who manages our accounts receivable (AR) and accounts payable (AP), Business Management Company still verifies that everything is correct and does our final tax reporting. I’m also in the process of a small acquisition, so I’ve asked Business Management Company to mediate and help with the assets during the acquisition if it does go through.

What is the team composition?

I interface with Brett and Phil (VP & COO, Business Management Company), but I also communicate with Lucas (Accountant, Business Management Company) who does our reconciliations, Jennifer (Director of Operations, Business Management Company), and Brett’s assistant. In addition, we are in weekly contact with another teammate who handles payroll and administration.

How did you come to work with Business Management Company?

I went through a review process where I was just looking around. I talked to other similar businesses that I respected, and they all told me to talk to Brett from Business Management Company. After meeting with Brett, I decided that Business Management Company would be a good longterm fit for us. 

How much have you invested with them?

We spend about $8,000-$10,000 per year for their services, depending on what we do. We tend to spend about $2,000-$3,000 on payroll, and a minimum of $5,000 on taxes. Our spend does increaseif Business Management Company does any specialized work for us.

What is the status of this engagement?

We started working with them in January 2012, and our engagement is ongoing.

RESULTS & FEEDBACK

What evidence can you share that demonstrates the impact of the engagement? 

Thanks to Business Management Company’s work, I have a much better sense of my business and the options available to me, which is great from a financial perspective. I understand my business from macro- and micro-levels, so I’m in a better place to make decisions. Additionally, taxes and accounting are fairly complicated, detail-oriented tasks so we’ve had a few hiccups over the past eight years but they’ve always identified the solutions. They’re on it.

How did Business Management Company perform from a project management standpoint?

We use QuickBooks at New North that Business Management Company helps with. Now, they manage our books through QuickBooks Online, which we switched to in 2019. This allows them to look through our books remotely. Additionally, they have a client portal that lets us pull reports, paystubs, and tax returns from any year so Business Management Company doesn’t have to find them for us, which is helpful.

What did you find most impressive about them?

They handle day-to-day business operations but, from the business strategy side, they’re also very smart at thinking about options and partnership agreements. They’re a readily-available, trustworthy resource. They’ve been around for many years and they really understand the idea of supporting other businesses. When working with them, we don’t feel like we’re just a cog; we actually have relationships with them, especially after eight years. They’re truly invested in our community so working with them has been a joy.

We all experience different business challenges, so it’s been great having a responsive partner who we can trust to handle any problems we face. They also have a fantastic referral business. I didn’t have to search for them; I was referred to them, which speaks to how solid they are.

Are there any areas they could improve?

I think we’re at a place with them where we’re beyond improvements. We’ve had bumps and hiccups but they’ve always fixed them. If there is something that they can improve on going forward, I know that they’ll do that. I also only have 2-3 meetings a year because our internal bookkeeper handles the payroll, so I’m not sure if there are any issues there. Other than, I can’t think of anything. It’s been a great relationship.

Do you have any advice for potential customers?

Make sure to ask questions. Depending on the size of the business, that tends to be a challenge. Business Management Company has a lot of knowledge and wisdom so companies should feel comfortable trusting their insights. Many people on the team have different levels of experience so use them extensively, because they’re worth the penny. I definitely missed the boat not working with them sooner.