When looking at consolidated statements, it can be difficult to identify factors that are affecting a company's costs. Breaking up the consolidated statements and analyzing the individual company performance can be tedious and time-consuming.
This accounting firm initially loaded the consolidated financial statements for a family of four restaurants. We suggested they run each of the entities to evaluate their individual performance. Our application was able to identify that 3 of the 4 restaurants had labor costs slightly lower than their peers while they fourth entity had labor costs 10% higher than peers. The performance of the first three masked the higher costs in the fourth when evaluating the consolidated statements.
The partner was able to meet with the client to review the reports and analysis, and help the client dig into the higher labor costs within the fourth restaurant.