Accounting Case Study: Comprehensive Accounting Services: CFO, Controller, Taxation
Company
Industrial manufacturer in Montgomery County, Pennsylvania. Revenue as of 2009 (start of engagement): $677K; Revenue as of 2024: > $8M.
Position
Fractional CFO, Controller, Transactional Accountant
Challenge
The company was using an antiquated mainframe system, which was homegrown. Further, there was no formal finance department: accounting tasks were divided among several outsourced part-time people and two in-house employees from other departments who entered invoices when available. The president was unable to retrieve current financial reporting to make appropriate decisions for the benefit of the company.
Work Performed
Our first task was to consolidate the accounting team. By providing a fractional CFO, a controller, and a transactional accountant, we were able to immediately streamline communication for clarity, while freeing up both financial resources for the company and allowing the on-site staff to return to their regular roles full-time.
Our second endeavor was to convert the company’s accounting system over to QuickBooks Enterprise, with an eye toward improving the accuracy and speed of financial reporting.
Finally, we assumed responsibility for all aspects of the finance department, including day-to-day transactions, month-end close, quarterly reporting, cash-flow management, expense analysis, year-end close, and taxation. This enabled the president to create stronger internal controls and have greater visibility as to the company’s finances.
Over the years, we converted the company to ADP to simplify their payroll issues and renegotiated their health, disability, and life insurance costs. We also facilitated the changeover between banks, to provide greater stability to the company’s resources. We also provided due diligence, pre-acquisition and post-acquisition support, and complete financial reporting for the company’s acquisition of a second company.
Outcome
The president of the company had immediate visibility and transparency of his company’s numbers. He was able to quickly turn things around by making better decisions about vendors and pursuing outstanding debts. This enabled him to direct his sales and marketing team more efficiently. In 2023, the company was able to purchase a second business, adding to their revenue and portfolio.