Rags background
Rachel Nilsson originally started Rags to sell her kids’ hand-me-down clothing. She wanted something fashionable yet functional. She loved the idea of a one-piece, but hated the hassle. So, she created her own. The Rag. The first Rag was made from her husband’s t-shirt! She immediately shared the Rag on social media and the response was crazy. It started selling super fast and she found herself sewing around 200 Rags every three to four days. People loved it as much as she did! She started sewing Rags in her parents’ basement, then moved into a house, hired a couple of people, and ran the business from her garage and bonus room. Now, they’ve moved to an office space and she has the best team ever who are helping Rags grow even more.
As Rachel, CEO and founder, puts it:
“I wanted to make a product that was fashionable and functioned well. There was nothing really in the market that had that, so I made my own, and I posted on social media and I ended up going bonkers.”
Finding LedgerGurus
As Rags grew, the accounting needed more support. Rachel explains how they found LedgerGurus:
“We were in a moment in our business that we needed something a little bit more on the accounting side, and one of my really great friends, she’s somebody that I would look up to in business and whatnot, actually highly recommended LedgerGurus.”
LedgerGurus results
LedgerGurus has enabled Rags to focus on their expertise with running and operating the business instead of spending their time focused on the accounting processes. The LedgerGurus team has provided services for ecommerce accounting, inventory and cost of goods sold, sales tax, and financial tracking and review. This includes reconciliations by sales channels and payment processors to create transparency across multiple sales channels along with increased visibility into the associated cost of goods sold.
LedgerGurus has also ensured accuracy of reporting within a newly implemented inventory system, provided sales tax liability analysis and necessary quarterly filings, and daily tracking of all transactions. LedgerGurus assisted in identifying and implementing new tools to help automate and mature financial processes, while incorporating best practices and new technologies.
A responsive and knowledgeable team
Josh Robbins, COO of Rags, starts with the people:
“Working with LedgerGurus has been great from our people standpoint. So when we first started the engagement with the company, the whole team came in, we met them. It was really nice meeting everybody, seeing everybody. And then they’ve been extremely responsive. So if I have a question, I will send it to them and I get a response almost immediately. There’s been times I feel bad, but they’ll email me back and forth at 10:00 or 11:00 at night, and we’re going back and forth and getting everything done, and they’ve been fantastically responsive.”
The team also brought ideas and accounting depth:
“There’s times they’ve surfaced a lot of additional ideas or concepts for us, some things around sales tax, some things around just different methods and processes that we can implement internally. Overall, I just really enjoy working with them. I mean, they’re always very courteous on the emails, very timely, and I think one of the big things as well that I’ve really appreciated is they’re very knowledgeable. When I had a question that was accounting based, they utilized accounting principles to answer that question, which has been very helpful. And so I trust everything they’re doing.”
Josh watched the handoff closely:
“I kept a close eye on this, just because maybe I’m a little bit OCD about things as well, but I kept a close eye on things and everything went perfect. In fact, the way that I was accounting for something, I was planning to train the team to say, ‘Hey, I built the process to do this,’ and that team actually came in and built their own process, which was much better than mine. And I think that’s largely because they’re used to working with Shopify, they’re used to doing ecommerce, and so they brought that knowledge and improved what I was already doing anyway, and it made me feel very comfortable that this team knows exactly what they’re doing.”
Technology and automation with LedgerGurus
For Josh, the technology made a real difference:
“One other thing I like about LedgerGurus is that they’re focused on technology. I come from a technology background. I worked for Lucid Software, Qualtrics, Amazon. I like these companies that utilize technology to accomplish their tasks.”
“Everything, when I was doing the accounting myself, it was super manual. When the person before was doing it, it was very manual. When I was planning to hire someone who’s a BYU student, it was going to be super manual. And LedgerGurus brings all sorts of different pieces of technology, even for time tracking, that really helped us automate a lot of the tasks, help things be more clean. And overall, I just enjoyed working with technology a little more as well.”
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We helped Rags. Let us help you.