Warranty Accrual
Building an accrual process reflective of the business
Large Regional Homebuilder
The Opportunity
Warranty accruals had drifted over the years. Costs from pre-COVID operations and inflation didn't reflect the current reality. The natural outcome of outdated models: financial statements out of sync with the business, making accruals unreliable.
Solution
Truegility performed a deep historical analysis, factoring in updated, more industry-specific inflation and pandemic-era impacts, and built a tailored accrual calculator and dual reporting views: one for business ops, one for finance. That way, both sides see consistent, accurate numbers grounded in real business operations.
Results
Truegility's solution successfully cleared historical misalignments with a one-time adjustment, establishing a repeatable, accurate accrual process that is perfectly aligned with actual business activity. This transformation ensures data integrity across the organization and drives confidence by delivering role-based reporting, guaranteeing that business leaders and finance teams are always speaking the same numbers.
Expertise Highlight