Success Stories


Rebounding and adapting when the marketplace takes a turn for the worse.

Less demand for bad check diversion services cut into the cash flow and profitability of BounceBack. New services and financial controls stabilized the income statement and positioned it for scalable growth.

Famous for the sly happy-go-lucky slogan “what happens there, stays there,” it’s not terribly surprising that in addition to being a gambling capital of the world, Las Vegas is also the bad check capital – with nearly 40,000 bad checks written annually. Local prosecutors and businesses are swamped with accidental, as well as criminal, check kiting and it’s just simply not possible for understaffed county courts to pursue all of them individually.

Enter Kansas City company BounceBack to increase their odds of recovering restitution for bad checks. BounceBack specializes in bad check software and diversion programs, with a restitution rate of more than 50 percent. As a world destination, Las Vegas bad checks can be for significantly large sums of money and from exotic locales. Using BounceBack’s software, the Las Vegas District Attorney’s bad check unit once recovered a  $4.5  million  gambling marker from a Middle Eastern monarch  as well as $4 million in restitution from a Taiwan-based high-roller.

Founded in 1993 to develop bad check management software for Jackson County, Mo., BounceBack has grown to become an industry leader in  outsourced management and  software for  bad  check restitution,  serving judges and prosecutors in jurisdictions nationwide. And its sister company, Check Connection, helps merchants who want to recover losses from criminal bad checks by connecting them with prosecutors’ programs. It’s a win-win for all parties.

With the proliferation of credit cards and e-payment systems, bad checks have actually declined because consumers write fewer checks. The recession also lowered overall check writing, which lowered bad check incidence rates and prosecutions fell. And so fell BounceBack’ s bad check volume and revenue – a whopping 30 percent.

On top of an already soft marketplace, the company discovered poor financial management by a key employee and BounceBack soon found itself in a fight for its corporate life. Gale Krieg, COO, went to work to assess damage and develop a plan for righting the ship.

Krieg asked Tim  Sernett of Virtual BeanCounters Inc.  to  get BounceBack on track with basic financial reporting and monitoring. Among other services, Virtual BeanCounters provides BounceBack with bookkeeping, cash flow management, expense tracking and financial reporting.

“Working with Virtual BeanCounters is easy, smooth and helps me sleep better,” said Krieg, who especially appreciates a regular weekly conference call regarding cash flow and invoice tracking. “We review itemized big expenses, our cash position, and projected cash flow needs compared to expected receivables. We now know what to expect and plan for.”

Virtual BeanCounters CEO Tim Sernett, a CPA, and his team provide businesses of  any  size with  bookkeeping, accounting, controllership and CFO outsourcing. Sernett subscribes to a rather simple value proposition: “We support entrepreneurs with good numbers every day, helping them manage towards improved cash flow, higher profits, and more stability.”

With Virtual BeanCounters managing finances, Krieg and team focused on  creating a  new service that  would assure revenue generation even during a recession. The new service Bracket™, was designed to  open up  a whole new market in  the  area of general misdemeanor diversion programs. Again, with non-violent misdemeanor volume so high, court officials are happy to hand over education and diversion responsibilities  to BounceBack. Besides relieving the  administrative burden,  BounceBack saves clients’ money because all program costs are paid by offenders.

The future for BounceBack looks very bright these days. Applying the  financial management tactics and  expertise of Virtual BeanCounters, including budgeting, expense management and cash flow management, BounceBack has substantially improved bottom line profit.

Krieg vows he will never again gamble on the wrong financial professionals and the scalability of Virtual BeanCounters makes it possible for him to work with Tim Sernett and his team for many years to come. “We should have been working with Tim years ago, and now we can hardly imagine running things without them.”

Gale Krieg