Award-Winning Interior Design Firm KTI Transforms Financial Clarity into Sustainable Growth

Background

For nearly three decades, Kimberly Timmons Interiors (KTI) has been recognized as one of the top interior design firms in the country, creating award-winning spaces for luxury residences, model homes, and hospitality projects nationwide. With three specialized design studios and a reputation for timeless design that seamlessly blends form and function, KTI has built a successful portfolio serving elite clients across hospitality, residential, and commercial markets.

While the company’s outward success was clear, early signs in the financial reporting suggested areas that could benefit from attention - important indicators that, if not addressed proactively, could hinder the next stage of long-term sustainable growth.

Challenges

Although the company appeared to be in a strong financial position on paper, real-time indicators revealed inconsistencies that didn’t fully align with the reported financials. Addressing the root cause of these discrepancies required seasoned financial expertise, capabilities that were not currently available within KTI.

KTI brought in Scott Meyers, a SPRCHRGR Fractional CFO, to interview their current Controller and other staff to understand why this could be happening. Here’s what we found:

• Accounts Receivables and Cash Reality

  At the core of the issue, a complex billing process combined with a series of oversights in the company's financials led to an overstatement of accounts receivable. This gave the appearance of financial strength, though it did not accurately reflect actual cash collections. These inconsistencies were not immediately apparent to the Founder and CEO, but over time, they began to raise concerns that warranted deeper investigation.

• Billing Process Delays Led to Unreliable AR Aging Reports

  The AR aging issue initially appeared to be a result of delayed  billing. However, further analysis revealed that many invoices were actually being issued early for future billing periods, tied to jobs that were not yet complete. As a result, receivables balances were appearing on the books despite not yet being truly due and payable. In some cases, this practice extended over several months, creating a distorted view of the AR aging and the company’s financial position.

• Complicated Revenue Recognition Policy and Deferred Revenue

  The company’s revenue recognition policy was complex, involving multiple stages of service delivery and billing milestones. This complexity often led to timing mismatches between when revenue was recorded and when it was actually earned. In particular, deferred revenue — amounts billed in advance for work not yet completed — was frequently recognized prematurely, creating inconsistencies in financial reporting. Without a clear framework to align revenue recognition with actual project and billing progress, the financial statements risked overstating performance and obscuring the true economic position of the business.

• Design Studio Department Silos Limited Visibility

  Inaccurate financial reporting practices obscured visibility across the three design studios. As a result, leadership couldn't identify which projects were truly profitable or where to allocate resources for maximum impact.

• Critical Banking Relationship at Risk

  Unreliable financial reporting was going to affect their bank relationship, constraining the company's line of credit, which was critical to supporting the working capital needs of a multi-million-dollar design firm.
  
  

Supercharged Solutions

SPRCHRGR didn't just unearth KTI's financial challenges — we engineered a complete operational transformation that turned financial management from a potential liability into a competitive advantage.

• Banking Relationship Restoration – a Head-on Approach with Transparency

  We addressed the issue with complete transparency and then set to work on creating accurate financial reporting delivered within 30 days of the month-end. This ensured that we kept complete bank confidence while we solved the underlying issues. We then positioned KTI for expanded credit facilities that supported continued growth rather than constraining it.

• Strategic CFO Assessment & Cash Flow Engineering

  Our team, including both Scott Meyers and Angie Stone, Senior Controller at SPRCHRGR, conducted a thorough CFO Assessment. This financial health audit quickly identified discrepancies within the accounts receivable and revenue recognition processes. By implementing a streamlined billing system, we significantly improved cash flow, revenue recognition, and operational efficiency. This transformation elevated KTI’s financial visibility from uncertainty to clarity, enabling leadership to make informed, strategic decisions with confidence

• Leadership Transition & Change Management

  SPRCHRGR guided KTI through the challenging process of replacing underperforming financial personnel, providing interim leadership while recruiting and onboarding an outstanding controller, Heather Johnson, who brought both expertise and a fresh perspective to the organization. Alongside SPRCHRGR, Heather was a champion of change and transformation and is deserving of equal credit.
  

• Operational Process Optimization Across All Studios

  We restructured KTI's billing and project management workflows, working with Heather to train each studio head on upgraded job costing, pricing strategies, and accountability measures. This distributed financial responsibility while maintaining centralized oversight and control.

Transformation Outcomes

SPRCHRGR didn't just stabilize KTI's finances — we transformed them into a strategic asset that powers continued growth and innovation in the competitive design industry. Through systematic process engineering and strategic financial management, KTI emerged stronger, smarter, and built to scale.

"SPRCHRGR helped us unlock opportunities we didn't even know existed," says Kimberly Timmons-Beutner, Founder & Principal of KTI. "Beyond solving our immediate challenges, they identified ways to rebuild our billing and project management workflows between our studio heads. SPRCHRGR didn't just fix our numbers or clean up our AR — they gave us the financial foundation so I could get back to more of what I love doing: meeting new potential clients and designing beautiful spaces."

Key results:

• Cash Reserves Stabilized

  Cash reserves increased, providing the operational cushion needed for strategic decision-making rather than survival mode.

• Profitability Sustained

  After implementing new financial processes, KTI has achieved consistent and positive financial outcomes. The organization has transitioned from operating in uncertainty to functioning as a cohesive, well-aligned team with a clear understanding of its goals and the strategies needed to reach them.

• Banking Relationship Strengthened

  Consistent financial reporting and improved cash management increased KTI's lines of credit with its bank which provides growth capital for larger projects and strategic opportunities.

• Leadership Empowerment & Studio Head Accountability

  Studio heads became proactive financial stewards of their projects, leading to improved job costing accuracy, better pricing strategies, and increased profitability awareness that drives day-to-day decision-making.

• Strategic Focus Restored

  With financial operations running smoothly, Kimberly could shift her attention from crisis management to business development (what she loved doing!), positioning KTI for continued growth in the luxury design market.
  
  

A Partner Built for Interior Design & Architecture Firms

With SPRCHRGR as their transformation partner, KTI isn't just managing finances; they're using financial clarity as a competitive advantage. The firm continues to deliver award-winning design work while maintaining the operational excellence that ensures long-term sustainability and growth.

Whether you're facing a cash crisis or preparing for strategic expansion, our fractional CFOs and tech-forward team bring the clarity, tools, and velocity to help you get there faster.

Ready for our fractional CFOs and accountants to help engineer your financial transformation that fuels strategic growth? Let's talk!