Even the best accountants benefit from Peak’s cost reduction services
Steve Burnett knows how keeping costs down can boost a company’s bottom line. As the owner of one of Sacramento’s best known CPA firms, he gave the green light when Peak Cost Containment approached him about analyzing the expenses of the accounting firm Burnett + Company LLP.
“A wise businessperson, in both good and bad times, is always keeping an eye on expenses,” he said. Still, he doubted anyone could find ways to save money at his firm. “We run a tight ship,” Burnett explains. “As a CPA firm, we’re especially cost conscious.”
Still Burnett was interested in any efficiencies and savings that a cost management consultant might find. He asked Van Haas, CEO of Peak Cost Containment, to examine company expenses.
As the project got underway, Burnett + Company LLP was quietly preparing for a merger with GALLINA LLP. Burnett had Peak focus its cost analysis in specific areas, and concentrate on others later. Burnett knew, for example, that his company’s current 401(k) plan would be superseded by something new.
Small time commitment, big savings
Peak identified ways to save an average of 30 percent on multifunction copiers, office supplies, beverage service, merchant card services and document management. Separately, Peak identified ways to save 30 percent to 63 percent on telecommunications costs, depending on which of four options Burnett might choose.
In all, Peak identified ways that Burnett + Company LLP could save $58,648 a year, profit that would go straight to the bottom line.
“The dollars he came up with on an annual basis were substantial,” Burnett said. He and his staff also liked the detail included in the cost-containment, with a summary of numbers near the front of the report.
“When Haas goes through the final report, he already has all the documents that make it easy to implement the changes. He has done the legwork in that area,” said Debra Rosenberg, Burnett + Company’s controller.
Burnett did not have to pull his staff away from their regular jobs. “The initial meeting took about an hour. With meetings, phone calls, data accumulation and reviewing the final product, it only took a total of five hours altogether,” said Rosenberg. Dividing the total potential savings by the time invested yields an average of $11,730 an hour. “That’s time well spent,” Burnett said. “As a CPA firm, Peak made us a believer.”
Comfort zones and fresh eyes
“My first concern was that Haas might try to move us to vendors that he had a relationship with,” Rosenberg said. But the plans presented by Peak included options to stay with current vendors for most products and services. And, as is always the case with Peak’s recommendations, Burnett had the final say over what changes to implement.
Rosenberg was extremely impressed that Haas was able to call the account representative at Burnett + Company LLP’s bank and negotiate a better deal for merchant card services, even though Burnett already was under a contract.
“He has a lot of pull because of his experience, background and all of his contacts,” she said.
Haas also was aware of resources that Burnett + Company LLP didn’t know about, such as the beverage service provided by an office supply vendor.
“Sometimes you can just get stuck in your ways,” Rosenberg said. “Having a fresh set of eyes on the invoices and contracts opened up new possibilities.”
Repeat performance
Burnett and Rosenberg were pleased that Peak found savings they hadn’t even considered. They didn’t have their egos on the line.
“I don’t think a person should feel that way. A businessperson should always surround themselves with the best,” Burnett said.
He now sees Peak Cost Containment as a trusted adviser, to be brought in when major spending decisions have to be made, and possibly handle negotiations.
Haas noted that when it comes to analyzing expenses such as phone service, document storage, toner supply and data backup, it’s more effective to turn to someone who has performed the same services over and over for other companies.
The merger that was under way did wrap up as planned, and now Burnett sits on the executive committee of the larger firm, with approximately 200 people and several offices in Calfornia, Nevada and Washington.
“We are very much looking forward to Haas using his cost reduction method for our new firm,” Burnett said.
About GALLINA LLP
GALLINA LLP is a regional accounting firm serving construction and related industries since 1972. The firm has offices in Las Vegas, Novato, Rancho Cordova, Reno, Roseville, San Bruno, San Jose, Seattle and Walnut Creek. Since our founding, GALLINA LLP has been dedicated to continuity and consistency in the quality of our work, client relationships, and corporate culture.
GALLINA LLP is recognized as the premier provider of accounting, auditing, tax, and financial management consulting solutions to the construction, real estate, and related industries. The firm also provides services to government entities, not-for-profit organizations, and a variety of industries ranging from ranching to technology. Our specialized services support clients on a local, national, and international level. Learn more at gallina.com or call 916-784-7800.
About Peak Cost Containment
Peak Cost Containment is a Sacramento, California based cost management company using a four-step cost reduction method to reduce business costs 10-30% in about 90 days for most clients. Learn more at peakcc.com or call 877-765-PEAK (7325).