Biotechnology start-up booms and almost busts because of bookkeeping problems
When a startup company discovered a revolutionary new biotechnology, it took off like a rocket, growing from six scientists to 300 employees as it accelerated towards an IPO. But GalaxyBus* didn’t have the administrative infrastructure to support this growth, and this soon became all too clear in the company’s bookkeeping. GalaxyBus’ investors were dismayed to find scientists purchasing state-of-the-art equipment and expensive materials without any coordination, approval process or cost-benefit assessment. Nobody could say what the true cost of each department was. Accounts payable had no workflow controls, and more than 100 checks a week were flowing out of the company. GalaxyBus was in danger of blowing up on the launch pad.
The board of GalaxyBus stepped in and hired Maxwell Money to provide the accounting expertise and bookkeeping infrastructure that GalaxyBus needed. Maxwell established departmental expense tracking to support budgeting and implemented a purchase order system to ensure consistent approval, oversight, and correct financial tracking of all purchases. Maxwell also assisted GalaxyBus in its migration from an internally run payroll process to a Professional Employee Organization (PEO) to take advantage of reduced employee benefits costs, improved retirement plan options, HR management, and reduced employer risk.
Bookkeeping isn’t rocket science. For us, it’s harder.
After Maxwell put GalaxyBus’ bookkeeping in order, the company hired a CFO and controller, who could now leverage the administrative structures Maxwell had put in place without needing to hire any administrative staff. Instead, with Maxwell taking care of the daily business of bookkeeping, these high-level contributors focused their expertise on the company’s tactical and strategic financial actions, including raising capital and establishing channel partnerships.
“Bookkeeping isn’t rocket science, ” says GalaxyBus’ founder. “For us, it’s harder. We’re glad that Maxwell provides the business-critical expertise we lack in-house. ”
Technology startup that grew rapidly from 6 to 300 employees.
Bookkeeping services for expense tracking, budgeting, and purchase order workflows.
QuickBooks Enterprise general ledger, Bill.com accounts payable workflow and ADP TotalSource professional employee organization solution.
- Eliminated expensive duplication of purchases.
- Tracked and reduced uncontrolled spending.
- Implemented and supported budgeting process.
- Provided insight into Profit and Loss for each department.
- Supported high-level financial staff.
- Eliminated the need to hire lower-level administrator.
Company names and some identifying details are changed to protect the privacy of our clients, but the stories are true.