Reconciled Company Profile

Background

Reconciled is a full-service virtual accounting firm founded in 2015 by Michael Ly and Bonnie Reese in Burlington, Vermont. The company specializes in providing online bookkeeping, accounting, CFO advisory, tax, and HR services to entrepreneurs and small businesses across the United States. By leveraging cutting-edge cloud-based technologies, Reconciled aims to streamline financial processes, enabling clients to focus on their core business operations.

Key Strategic Focus

Reconciled's strategic focus centers on delivering comprehensive virtual financial services tailored to the unique needs of small and medium-sized enterprises (SMEs). The company's core objectives include:

Cloud-Based Solutions: Utilizing advanced cloud accounting platforms to offer real-time financial data access and management.

Personalized Support: Providing dedicated professionals to ensure customized and responsive client service.

Industry Diversification: Serving a broad spectrum of industries, including manufacturing, e-commerce, non-profit, professional services, and food and beverage sectors.

Financials and Funding

Reconciled has demonstrated significant financial growth since its inception. Notably:

Revenue Growth: The company achieved a 282% three-year revenue growth, securing the 1,983rd position on the 2023 Inc. 5000 list and ranking 124th in the Financial Services category.

Funding: As of November 2023, Reconciled secured a $3.27 million debt financing round, contributing to a total funding amount of $4.78 million.

Pipeline Development

Reconciled has expanded its service offerings through strategic acquisitions and service enhancements:

Acquisitions:

Bean Team: Acquired in November 2020, enhancing Reconciled's presence in Tallahassee, Florida.

HR Business Solutions: Acquired in July 2022, strengthening HR service capabilities.

Accounting Services Group: Acquired in February 2022, broadening accounting service offerings.

Service Expansion: Launched a new tax and advisory department to provide comprehensive financial solutions.

Technological Platform and Innovation

Reconciled differentiates itself through the integration of proprietary technologies and innovative methodologies:

Cloud Accounting Platforms: Employs leading cloud-based accounting software to facilitate efficient and secure financial management.

Digital Workflow Optimization: Implements streamlined digital processes to enhance accuracy and reduce manual errors.

AI-Driven Insights: Utilizes data analytics and machine learning algorithms to provide clients with actionable financial insights.

Leadership Team

Reconciled's leadership comprises experienced professionals dedicated to driving the company's mission:

Michael Ly: Co-Founder & CEO

Background: Financial consultant with extensive experience supporting small businesses.

Role: Oversees company strategy and growth initiatives.

Chandler Yelton: President

Background: Executive with expertise in organizational leadership across various industries.

Role: Manages overall operations and strategic direction.

TaBetha Awaldt: Director of Accounting Services

Background: Holds degrees in Business Administration and Economics; experience in retail, oil and gas, and construction industries.

Role: Leads accounting service delivery and client relations.

Angie Bandy: Director of Human Resources

Background: Extensive HR experience across companies and non-profits; holds a BBA and MHR.

Role: Manages HR initiatives and organizational development.

Ryan Briouig: Director of Tax

Background: Certified Public Accountant with a Master's in Accounting; expertise in taxation and financial modeling.

Role: Oversees tax services and compliance.

Michelle Fisher: Controller

Background: Experience in non-profit financial management; specializes in reconciliations.

Role: Manages financial reporting and controls.

Leadership Changes

Reconciled has experienced leadership evolution to support its growth trajectory:

Acquisition Integration: Post-acquisition of Bean Team in 2020, Charles Musgrove, Founder & CEO of Bean Team, joined Reconciled to facilitate the integration and expansion in the Southeast region.

Competitor Profile

Market Insights and Dynamics

The virtual bookkeeping and accounting services market has witnessed substantial growth, driven by the increasing adoption of cloud technologies and the demand for cost-effective financial management solutions among SMEs.

Competitor Analysis

Key competitors in the virtual accounting space include:

A. M. Peisch and Company: Offers comprehensive accounting services with an estimated annual revenue of $8.5 million and 62 employees.

McSoley McCoy & Co.: Provides audit and tax services, with an estimated annual revenue of $6.1 million and 46 employees.

Gallagher Flynn & Company: Specializes in advisory and tax services, boasting an estimated annual revenue of $21 million and 129 employees.

Strategic Collaborations and Partnerships

Reconciled has established significant partnerships to enhance its service offerings:

Xero: Achieved Gold Champion Partner status, indicating a high level of expertise and commitment to the Xero platform.

Intuit QuickBooks: Recognized as Intuit's 2018 U.S. Firm of the Future, showcasing innovative use of QuickBooks Online.

Operational Insights

Reconciled's operational strategy emphasizes:

Remote Workforce: Maintains a fully remote team, enabling access to top talent nationwide and offering flexible work arrangements.

Client-Centric Approach: Focuses on building strong client relationships through personalized service and proactive communication.

Scalable Solutions: Provides services adaptable to businesses of varying sizes and industries, ensuring scalability and flexibility.

Strategic Opportunities and Future Directions

Looking ahead, Reconciled aims to:

Expand Service Portfolio: Introduce additional advisory and consulting services to meet evolving client needs.

Enhance Technological Capabilities: Invest in advanced technologies, including AI and machine learning, to further automate processes and provide deeper financial insights.