How Paro Helped RIPT Apparel Improve Its Cash Flow Management
by Dan Wywrot, on Aug 30, 2016
RIPT Apparel, headquartered and operating in Chicago, has grown its customer base and annual revenues to over $4 million selling limited edition and custom T-shirts for the past 7 years. The clothing features designs from hundreds of different artists with elements of pop-culture and nostalgia. RIPT prioritizes the treatment of its employees and positions its artists for success every single day, and the company was even recognized by being named in Inc. 500 in 2014.
Featuring new designs every 24 hours, 365 days a year, the owners and operators remain constantly committed and tied to driving new content and increasing sales. In a competitive industry and time-sensitive business model, growth is crucial, so the owners often pushed accounting and finance processes to the back burner. This all changed when RIPT handed over its everyday bookkeeping and accounting functions to Paro’s highly vetted freelancer network. Today, RIPT continues to pump out content and amass an enormous fan following waiting for their next limited edition clothing, but now does so knowing that its finances are in good hands.
Some functions of your business should be on autopilot
Customers worldwide know the value in RIPT’s original designs and affordable pricing. Business owners at RIPT can keep their focus on content and sales by putting bookkeeping and accounting into the hands of trusted and affordable professionals.
“As a business owner, I shouldn’t be spending my time cross checking numbers for service providers that I’m paying -that’s their job,” said Matt Ingleby, RIPT CEO.
While coming in at a comparable and even slightly lower monthly price point than previous providers, Paro began their relationship with RIPT by immediately upgrading them from an outdated legacy accounting software to a cutting-edge cloud platform. Now, all RIPT Apparel’s business owners have live access to their data in a malleable form, instead of via a once-a-month carved-in-stone PDF.
Old and stale habits can cost you money
Bookkeeping and accounting cover a range of lesser known functions, but recording and filing sales tax reports surely fall under most business owners’ definition of these roles. RIPT’s new accounting team at Paro requested access to all sales and bank data. After tracking down documents and cross referencing files, Paro quickly learned RIPT’s systems and within the first month discovered sales tax reports that seemed oddly high. Paro presented to RIPT’s owners that for six months, their old accountant had filed sales tax reports resulting in almost $21,000 in overpayments to the government. Had this relationship and method of filing remained in the hands of the legacy provider, surely more funds would have continued to be paid out, leaving the ever vital small business resource of cash in the hands of an agency that neither asked for nor required it. Sales tax forms were timely refiled, and RIPT was issued a credit for the full amount Paro identified.
The success RIPT Apparel has had with their customer success and growth is due to the relentless commitment and desire for ever-changing content from its owners, which is increasingly obtainable by putting some vital functions of their business into the hands of trusted service providers. Having diligent and highly vetted professionals on the job allows RIPT and Paro to build a mutually beneficial relationship.