Founded in 2015, True Turnkey solves a problem for real estate investors. The company buys properties, renovates them, then resells the properties to investors who wish to earn a hassle-free passive income. The industry calls these “turnkey” properties because the company delivers them to investors with everything they need – a home warranty, an occupant, and a property management service. All the investor needs to do is assume the risk of the investment.
About five years into running True Turnkey, Bradley Lopez, its CEO and co-founder, along with co-founder Mike Litman, decided it was time to level up its finance and accounting capabilities. When it was getting started, True Turnkey’s finances were reasonably straightforward. As the business matured, however, the function grew in complexity and became a distraction. They believed the organization needed a formal accounting and reporting process and strategic financial planning. Yet it lacked the appropriate in-house skills.
The founders wanted to hire dedicated, trained resources to manage their finance and accounting needs so they and their team could focus on running and growing the business. They decided to work with The CEO’s Right Hand (TCRH) because they believed it had the experience they needed to get this function on track and running smoothly while also providing strategic financial advice.
When The CEO’s Right Hand came on board, one of the first things they did was assume day-to-day responsibility for True Turnkey’s accounting function. They put a trained bookkeeper in place and moved the organization’s accounting system into QuickBooks online. Then they developed a creative workaround for inventory tracking and accounting – tailoring QuickBooks to True Turnkey’s unique needs. This workaround alone was transformative. It provides clear visibility into the company’s property level gross margins as well as the overall variable cash flow situation, so its leaders can plan.
TCRH also brought in a fractional CFO to oversee the function from a strategic level. The CFO established a simple set of policies and procedures for the company to follow, clarifying what the bookkeeper would need from others within the organization and when. He then worked with them to develop a financial planning process – complete with a budget, cash flow forecast, and a regular review cycle.
Once these processes and systems were in place, the CFO could step back somewhat and rely on the bookkeeper for much of the company’s needs – saving the business money. But he continues to provide guidance to the bookkeeper on technical issues. He also checks in each month to analyze the company’s financials, report on any issues or meaningful trends, and provide strategic insight.
True Turnkey’s founders achieved their goal. Now that The CEO’s Right Hand has taken ownership of True Turnkey’s finance and accounting function, it is no longer a distraction. Although they still experience ebbs and flows (due to the unpredictability of the real estate market), the new accounting system and internal processes help them adjust for this. They also receive a comprehensive report each month with actionable recommendations about what they must do to hit their targets.
With a new sense of consistency and predictability about their finances, the company’s leaders no longer worry. Instead, they are free to focus their energies on growing and scaling the company.
“I’m so glad we hired The CEO’s Right Hand to manage our finance and accounting needs. They eliminated the uncertainty we were feeling about our financial performance. As a result, we now know exactly what we need to do to turn a profit each month and can concentrate on running our business”
– Bradley Lopez, CEO and Founder of True Turnkey –
“The CEO’s Right Hand is a major asset to the company. We would not be where we are today without their help over the past year. They quickly learned our business model and translated the finance and operational drivers into actionable goals for the entire team.”
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