GHJ’s data analytics’ expertise saved both time and money by automating their sales reporting process.

HIGHLIGHTS:

• Automated the client’s sales reporting process
• Significantly reduced costs by eliminating recurring expenses
• Saved the client approximately 50 hours of labor per year and removed a material weakness from the audit

BACKGROUND

Puffco is a leading player in the cannabis supply industry that has partnered with GHJ since 2019. During the ongoing work with Puffco, GHJ identified a critical issue in their financial operations: a material weakness in its audits due to challenges with revenue recognition. 

Puffco tracked sales in its system based on the order date, but most of its sales should have been recorded on the delivery date or shipping date if pack and hold under ASC 606. Correcting this disconnect added hours of work to annual reporting and would generally add about three to four months to the annual audit process as the team conducted sales cutoff testing.

The client invested in a new general ledger system along with a third-party shipment tracking API which provided more accurate shipment and delivery data. A data analytics manager was hired to manage this data. Puffco worked with GHJ to take this data and streamline its processes.

GHJ'S APPROACH

GHJ’s Data Analytics Practice built out a model that automated the sales tracking process. Instead of spending weeks and months preparing key financial data, the Puffco team worked with GHJ to take its new systems and streamline reporting. The result is a system that automatically pulls a sales cut-off report with the click of a button.

RESULTS

GHJ’s automation solution produced a user-friendly report that efficiently filters and displays sales data for the correct reporting period, which effectively eliminates the material weakness in its annual audits.

The client saved about 50 hours of labor in preparing and scrutinizing sales data during the annual audit process as well as significantly reducing stress. The time to prepare an audit was also substantially shortened by three to four months.

In addition, Puffco previously had a significant annual cost on sales cut-off testing, and with the new model, this cost has been reduced to a one-time-fee that was less than half of their annual overage.

“Automating our sales reporting process has been a game changer,” said Puffco EVP Finance James Gates. “GHJ’s expertise streamlined a previously cumbersome process, significantly reduced costs and saved us valuable time. Their commitment to innovation has set a new standard for our operations and ensures we are poised for success.” 

GHJ is proud to deliver impactful, future-ready solutions. Our tailored approach has strengthened our role as a key partner in Puffco’s continued growth and success.