Customer Case Studies

www.sageintacct.com 300 Park Ave #1400 San Jose, CA 95110 877-437-7765 Copyright ©2019, Sage Intacct, Inc. All rights reserved. Sage Intacct is a registered trademark of Sage Intacct, Inc. P l a n e t F i t n e s s F r a n c h i s e e G r o w s 3 X w h i l e s a v i n G $ 1 0 0 , 0 0 0 a n n u a l l y locations – the finance team saved at least 1.5 full-time employee equivalents they would've needed to manage 29 different entities in QuickBooks. For example, RSM connected the Planet Fitness point of sales system with Sage Intacct. This integration pulls daily sales totals and various revenue transactions types from each club right into general ledger journal entries. In addition, the group's bank, which pushes cash from 20 operating accounts into an investment account each night, produces an online report that Kalinowski simply imports into Sage Intacct. At the end of the month, the system effortlessly reconciles each bank account with all of those cash transactions, something he says would be a time-consuming nightmare otherwise. Kalinowski also uses Sage Intacct's import function to create instant payroll entries from each entity's separate ADP accounts. All of these time savings helped Alder Partners shorten its financial close from three weeks to just 10 days. "Once we were freed up from a crazy monthly close process, we were able to do other things that add business value," said Kalinowski. "We shi ed our energy from 75 percent bookkeeping to just 25 percent, so we could spend the remaining 75 percent of our time focusing on planning, forecasting, and budgeting." Results Real-Time Dashboards Take the Blinders Off Growth Forecasting A er ge ing these basic accounting workflows under control, Kalinowski quickly developed expertise in Sage Intacct's reporting and dashboards – where he tracks cash balances, number of members per location, monthly dues collections, various marketing expense categories, margins by entity, and several other operating metrics and performance trends. Sage Intacct calculates each expense type as a percentage of revenue, so management can monitor monthly spending on things like payroll, advertising, and gym supplies against pre-determined benchmarks. Kalinowski estimates the company's budgets are at least 10% more accurate and its cash flow has improved, because he can easily track actuals-to-budget for specific entities and re-forecast every six months. "Before we adopted Sage Intacct, we were running blind since it just wasn't possible to do any kind of real-time analysis," shared Kalinowski. "Now, we're constantly measuring and optimizing year-over-year same store sales, various marketing campaigns, each of our five main revenue categories, and the ramp cycle for new gyms – the visibility we have is like night and day." When Alder Partners opens a new club, the owners know exactly when it's likely to reach the break even tipping point, and how far it has to go before hi ing revenue targets. This insight helps each location manage controllable expenses, especially around cleaning supplies and cost of goods sold. Kalinowski can see if one club is less efficient than others, drill down into its spending, and get it back on track towards profitability. This also supports the group's long-term scenario planning and cash forecasting. As a result, Kalinowski can ensure Alders Partners has the borrowing capacity to achieve its five-year growth objectives. "Sage Intacct makes it easy to give our bank the comfort to lend to us. We can confidently and quickly say, 'our last three gyms ramped up and were profitable within three to six months,' and the bank will loan us the money we need to get more locations open faster," noted Kalinowski. "I can deliver the performance information our lenders want in half the time it took me on QuickBooks, when we had much fewer entities to consolidate." The benefits we get from Sage Intacct are priceless. It increased our speed and visibility exponentially, which is critical with the kind of growth we're experiencing. The consolidations and various analytics for looking at our gyms both separately or collectively really opened our eyes. John Kalinowski, Controller, Alder Partners

• Cover