Case study: Outsourced accounting services for growing construction companies

Cobalt

Cobalt is an integrated real estate development and advisory company that brings strategy, execution, and long-term asset management under one roof. 

Context: The realities of meteoric growth

Construction companies face a unique challenge as they grow. Financial complexity hits as soon as contracts are signed, often before increased revenue has actually entered the bank accounts. That’s tricky for high-growth companies who need additional accounting services but might not be ready to hire in house right away. 

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Cobalt experienced this kind of exponential growth starting four years ago. They quickly expanded from a small company with a handful of employees to a complex, integrated business model that spans development, construction, financing, asset management, and operations. Their current staff of over 60 people includes project managers, superintendents, project engineers, electricians, construction crews, and more. 

The challenge: Taming the accounting complexity

Cobalt’s integrated model has driven the company’s success, but it has also introduced accounting complications. 

Cobalt’s construction operation alone now processes tens of millions of dollars in accounts payable annually. And, the company operates several interconnected businesses, complicating recording, allocation, and reconciliation. 

In its role as a general contractor, Cobalt must understand costs and revenue at the project level. Individual contracts can span accounting periods, and costs accumulate throughout the job lifecycle. Billing doesn’t necessarily move in lockstep with the work performed. Construction-specific accounting considerations like retainage further complicate the picture. 

When these and other finance considerations multiplied, Cobalt made the smart decision to upgrade their AP processes and software for long-term scalability. A time saver in the long run, these new tools create more work in the short term as they are integrated into existing systems. 

Solution: Outsourced accounting services that grow with the organization

All of this added up to a clear picture that Cobalt needed reliable, outsourced accounting services that could scale with the company. 

Simone, a systems specialist at Aerial Core, began supporting Cobalt as an integrated team member when the company consisted of just a few people. Since then, her role has expanded to meet the changing needs of the organization. She works directly with Cobalt’s internal finance team, participating in meetings and communicating throughout the day as needs arise in real time. 

Shaulana Turner, Cobalt’s controller, says that integration is key to the value Aerial brings. “They’re not a consultant to me. They’re my team.” 

Today, Aerial’s support of Cobalt is broad:

• Accounts payable

• Monthly close

• Intercompany accounting

• Managing the general accounting inbox

• Collecting W-9s

• Responding to vendor payment questions

• Supporting AP payment processor implementation

• Supporting the accounting software upgrade

And, Aerial’s role has become more specialized as well. Cobalt operates as a general contractor and also has related subcontractor,  development, finance, and asset operations. Simone’s ability to learn how these businesses interact has supported bookkeeping day-to-day, keeping Cobalt’s accounting foundation strong and setting the stage for continued growth. 

Aerial is committed to working with our clients long term as they evolve and grow, partnering for success. With Cobalt, Simone has advised and supported through multiple stages of the company’s growth. Her institutional knowledge has been a huge help as Cobalt has added finance staff, divided responsibilities across businesses, and introduced new systems. As Turner puts it, “[Simone] has all the back history, and she knows all the things!”

Outcome: efficient, supported growth

Today, Cobalt’s success continues as they expand the depth and breadth of their business. Aerial remains a dependable, flexible partner for outsourced accounting services, offering advice and tactical support as Cobalt evolves. 

Instead of wasting resources repeatedly onboarding new internal or external resources as the company adds entities, employees, and systems, Cobalt has reaped the benefits of an ongoing partner who understands the company’s current processes and the history that shaped them: greater efficiency, lower stress, less risk.

As Cobalt continues to grow, Turner says she would consider expanding Cobalt’s relationship with Aerial as the company’s needs continue to evolve.

Outsourced accounting services tailored to your company’s most ambitious goals

If your company is in the midst of or aiming for major growth, it’s time to think about what that means for your finance planning and execution. The right partner can reduce surprises and act proactively to implement processes and systems that smooth expansion for faster growth with fewer problems. 

Curious how Aerial could help your business’s growth accelerate? Schedule a quick call here to explore how we can partner with you for success.