What Are Turnaround Services?

Economic shifts, revenue fluctuations, and internal challenges can quickly destabilize a business. When performance declines, it’s critical to assess a company’s performance and longevity with the help of a professional who can look at things objectively. Seeking support when you first spot the warning signs can make the difference between recovery and closure.

Recognizing the warning signs — before it’s too late

For struggling companies, early intervention is key. Business failure rarely happens all at once and is often the result of ignored red flags that gradually weaken a company’s foundation. This can include a combination of any of the following:

Consistent cash flow problems
Declining profit margins
Rising debt levels
Inventory buildup or slow turnover
High employee turnover
Customer churn or declining satisfaction
Unclear or outdated financial records

Many business leaders miss these early warning signs due to limited visibility into their operations or financials. Founders and executives can sometimes believe challenges are temporary and will resolve themselves, leading to delayed action. And in high-growth environments, the heightened focus on expansion can further mask operational inefficiencies or financial instability, allowing problems to grow unchecked.

What makes a business turnaround successful?

To achieve a successful turnaround, a company’s leadership must acknowledge the existing problems and stay open to and curious about changes. Step one is finding a trusted and experienced partner to provide financial and operational expertise. When working with an accounting firm on a turnaround, the goal is to stabilize operations, return to profitability, and build long-term sustainability.

For example, when working with Mowery & Schoenfeld, the turnaround process follows these steps:

Step 1: Assessing your business’s health

A turnaround begins with a comprehensive business assessment. This step includes reviewing daily operations, analyzing financial practices and reporting, meeting with the accounting team, and evaluating current business processes. Understanding the company culture and setting a realistic timeline are also critical to developing an effective recovery plan.

Step 2: Creating a business turnaround strategy

After the assessment, the next step is to build a strategic roadmap for recovery. This involves creating a specific plan to address all uncovered issues during the assessment. This will likely include creating new financial practices, reviewing vendor contracts and customer terms, and updating the staffing plan. From there, a tailored action plan is created to address specific problem areas and set measurable goals for progress.

Step 3: Implementing changes to improve performance

Once the plan is in place, companies must implement changes across the organization. Your partner should be with you every step of the way: training staff, adjusting roles, improving workflows, and providing the data to support renegotiating terms with vendors, customers, or lenders. Having an accessible accounting partner who participates with you regularly is vital to ensure the business stays on course and adapts to any new challenges.

Determining a business’s future

If the company sees positive change in the timeline they set, then they are likely on the road to success — although ongoing analysis will help both investors and business owners rest easier.

But realistically, not every turnaround effort ends in success. After an agreed-upon period where recovery seems unlikely, sale or closure may be the right option. An honest evaluation at this stage helps protect the remaining value, minimize loss, or garner the greatest possible sale price.

Reviving a struggling business requires focus, expert guidance, and a willingness to change. With a clear strategy and strong execution, companies can overcome financial distress and build a path to sustainability. For struggling businesses, the right plan — and the right timing — can lead to a successful turnaround.

August 5, 2025