Client: Paul Gillund
Business: J.B. Distributing
Location: Eden Prairie, MN
Services: Monthly Accounting & Payroll Services
Relationship: 30+ Years
Outcome: Increased Efficiency, Reduced Reliance on Credit, & Successful Ownership Transition
Overview
J.B. Distributing has been adapting to changes in the automotive industry since Paul's father started the family business in 1971. The company is an independent distributor of Justice Brothers automotive additives, lubricants, and chemicals, serving customers throughout North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, and Michigan's Upper Peninsula.
Over the years, the market changed dramatically. Independent service stations that once represented much of the company's business disappeared, and large corporate retailers took their place.
J.B. Distributing responded by diversifying. The company expanded further into the agricultural market, which eventually grew to represent about half of its business. But as the company evolved, its accounting and payroll needs became more than Paul's mother could reasonably handle as the company's bookkeeper.
That's when the family turned to CSI Accounting & Payroll.
More than 30 years later, the relationship has helped J.B. Distributing improve efficiency, make informed business decisions, navigate a difficult ownership transition, and give Paul greater confidence in the company's financial future.
The Challenge
Growth and diversification had helped J.B. Distributing adapt to a changing market, but they also created greater financial complexity.
Paul's mother had handled the company's bookkeeping for years. As the business grew to include payroll, independent contractors, company employees, and a large sales force, the workload became increasingly difficult to manage. Paul's father recognized the need for outside support.
As Paul explained:
"My dad figured out that that was too much for one person to handle, and thus ran into CSI."
The business also had significant overhead. At one point, J.B. Distributing had 26 sales representatives in the field. Between payroll, fuel, employment taxes, and other expenses, maintaining such a large sales force was costly. The company needed better visibility into where its money was going and which parts of the business were producing the strongest results.
Years later, the family would face an entirely different challenge when Paul's father passed away. Although an estate plan was already in place, there were still important financial and ownership issues that hadn't been anticipated.
How CSI Accounting & Payroll Helped
CSI's role evolved alongside J.B. Distributing over the course of their 30+ year relationship.
Using Financial Statements to Find Opportunities
One of the biggest changes came when J.B. Distributing began receiving regular financial statements. Instead of relying on instinct alone, Paul and his family could see what was working and where the business was carrying unnecessary expenses.
According to Paul:
"We could see where our problems were. Once we started seeing a statement, we could depict our problems and depict our pluses and concentrate on what we do well..."
That visibility helped the company identify opportunities to operate more efficiently.
One of the biggest was its sales force. Rather than continuing to support 26 sales representatives and the associated payroll, fuel, and employment expenses, J.B. Distributing consolidated territories, created larger sales regions, and reduced unnecessary overhead.
Ongoing Payroll Support
Payroll has also remained an important part of the relationship.
With employees, changing payroll requirements, and evolving tax laws, keeping up with compliance can be difficult for a business owner. Paul appreciates being able to hand those responsibilities to a team that keeps up with the changes.
"It's been very, very good working with the payroll side there [at CSI]. And that's made a huge difference in our efficiency because of all the tax law changes with payroll."
That support allows Paul to spend more of his time on the activities that generate revenue.
As he explained:
"I can't save my way to profit. I have to go out and sell."
Navigating an Ownership Transition
When Paul's father passed away, CSI's role became even more important.
Although the family had an estate plan, the transition brought financial questions and circumstances they hadn't anticipated. Paul worked with Brian and Sam at CSI to understand the accounting implications and navigate the transition.
"I couldn't have done it alone. With their help, the transition became seamless."
The experience also gave Paul confidence that he'll have knowledgeable advisors available when it's eventually time for the next transition.
"I know they'll be in my corner."
The Results
Over more than 30 years, the relationship between J.B. Distributing and CSI has contributed to a more efficient business with greater financial visibility and significantly less reliance on debt.
Key Outcomes
✔ Consolidated a 26-person sales force and strategically reorganized sales territories.
✔ Reduced payroll, fuel, employment tax, and other overhead expenses.
✔ Improved visibility into profitable and inefficient areas of the business.
✔ Went from regularly relying on a line of credit to going years without needing it.
✔ Paid off the company's building and property.
✔ Paid off the company's vehicle fleet.
✔ Pays for inventory before it arrives.
✔ Successfully navigated the ownership transition following Paul's father's death.
✔ Maintained a trusted accounting and payroll relationship for more than 30 years.
For Paul, one of the clearest measures of the company's financial position is its reduced reliance on credit. Where the business once used its line of credit continuously, Paul said there was a period of seven years when he didn't need to touch it at all.
Today, the company's paid-for physical assets also reflect that emphasis on efficiency. The result is more than a stronger Balance Sheet.
"That makes me sleep better at night."
What the Client Had to Say
"I can't put a price tag on that."
For Paul, a decades-long accounting relationship ultimately comes down to trust.
He relies on CSI for more than financial statements, payroll, and tax compliance. He wants advisors who understand the business and can help him make decisions involving the wealth his family has spent decades building.
"It's hard to find those [trustworthy] people... This is your wealth. If you don't trust [your advisor], you better get the heck out of there."
That confidence is also why Paul is comfortable recommending CSI to other business owners.
"We're so confident with CSI. We've referred many a customer to them. I wouldn't refer somebody if I didn't have the confidence like I have with CSI. That's how good they are."
After decades spent growing and adapting the business, Paul is also finding more time to enjoy what that work has created.
"[I'm] traveling with my wife now moreso than I used to... and enjoying the fruits of what we do."
Why This Testimonial Matters
Successful businesses rarely stay exactly the same.
J.B. Distributing has navigated major changes in its market, diversified its customer base, reorganized its sales operation, transitioned ownership between generations, and continued adapting to changing payroll and tax requirements. Throughout those changes, accurate financial information helped Paul understand what was working and where the company could improve.
For other established business owners, the story demonstrates why monthly accounting isn't simply about keeping the books current. Regular financial statements and experienced guidance can help owners identify unnecessary expenses, make strategic decisions, prepare for transitions, and build a business that supports their long-term goals.
Related Services
CSI Accounting & Payroll provides a full range of accounting and advisory services for business owners, including:
- Payroll Services.
- Monthly Accounting Services.
- Business Advisory Services.
- Tax Planning & Preparation.
- Financial Reporting & Analysis.
