Laura Ortiz is the founder of Offernova, LLC, an all-natural health and beauty line. Opening shop in 2013, Laura dabbled in various eCommerce platforms. However, she saw a MAJOR opportunity in 2014 when she decided to create a better alternative for the Hispanic community.
Providing both products AND educational resources to a niche community was the key. This business model has launched Offernova, LLC to ever-increasing revenues each month.
With high-speed growth brought some growing pains around the accounting side of Laura’s business. Laura had a fantastic in-house bookkeeper but needed to get some better processes in place to save both time and money.
Automate and Implement
Offernova was already using Xero (our #1 accounting tool of choice) but didn’t have any automation around their sales reporting process. Recording sales was taking hours of precious time, leaving little energy left to analyze financial performance.
Offernova did not have a process in place to track or record inventory and Laura was unsure if their Cost of Goods Sold was accurate.
With our financial know-how, it was time to optimize processes for Scalability, Consistency, Adaptability, Longevity, and Efficiency, better known as our S.C.A.L.E Framework at The Bottom Line CPA.
Some BIG WINS were:
- Creating a new Xero account to start with a “clean slate”
- Entering monthly comparative data from old Xero account
- Building a customized Xero Chart of Accounts to provide clarity for Offernova’s bookkeeper
- Creating A2X for Amazon and A2X for Shopify connections that automate the sales reporting.
- Developing a process for accurately analyzing and recording seller fees
- Coaching Laura to determine her product costs
- Creating a process to utilize A2X for Cost of Goods Sold reporting
“For months I was looking for a finance expert, familiar with eCommerce. One that could guide and train us on the optimal setup of Xero.
I didn’t want a cookie-cutter program. I am glad to have found The Bottom Line CPA. They have taken the time to understand our business and create a custom program for us.
They are the team of experts we can ask questions to. We get thoughtful answers that not only take into account the needs of our business, but also the best accounting and finance practices”
The Prep, The Plan, The Profit
During the next leg of our journey with the Offernova team, a top priority was transitioning the business to serve Laura as its first priority in a healthy, sustainable way while helping her keep more of the money she earned.
After reading the book years prior, Laura was excited to jump into Profit First but admittedly didn’t know where to start.
The wins made without compromise: 👇🏆
- Referred Laura to a Profit-First friendly bank as a cost-effective solution to create her Profit First bank accounts.
- Held Business Entity Strategy Consultation with our team at DigiTax Pro™ for Tax Planning and Minimization
- Completed “The PREP” process to count the costs for Laura’s financial needs, upgrades, and dreams so “The PLAN” met these desires
- Assessed overall Offernova profitability by product to determine a focused strategy to raise revenue and increase profitability
- Increased Laura’s owner’s pay in the business by 14% — woohoo!
- Coached Laura to expand her virtual team with the remainder of her operating expense budget so she had who she needed to build her business fast
- Created a process for Laura’s bookkeeper to calculate Profit First transfers
- Recorded instructional videos showing how to calculate the bi-weekly transfers and perform Profit First quarterly assessments
“I learned that I needed to pay myself better and still be able to continue to run the business profitably. It’s now easier to understand how much I should pay myself and how much to keep in the business without feeling guilty!
I feel a lot more confident in implementing Profit First. It is a new habit, so it does take time to make the mental switch, but now I have the tools and process I need to follow it every month.
I even have the right supporting documentation so my financial assistant can run the calculation and recommended transfers so it’s less time consuming to do.”
The Bottom Line
At The Bottom Line CPA, we believe financial TRANSFORMATIONS are fueled by PARTNERSHIP. We also know “the best work is done when the books are done.”
Laura embraced the power of partnership and invested in her own financial success by allowing us to lead in our areas of strength.
All decisions when running any business are profit decisions. Remember, “Profit Is A Process™, and the process only works when you work it!”
