We have a client that has been coming out of a revenue decline induced in part by COVID 19, and they’re now in the black and growing nicely. But their accounting team has consistently been below an acceptable standard for performance. So when we started working together we connected them with an outsourced accounting firm that takes our client’s data entry information and produces financial statements, tax returns, etc. The client also moved an additional employee from Operations into Accounting to help fix the holes. Much improvement resulted for the client and for our ability to help them understand their financial condition and prospects.
But some things didn’t improve enough. The data entry has consistently had flaws that required back and forth Q&A, delaying reporting and related analysis and decision making. Despite developing a checklist of all the things that should be reviewed before sending data off to the accounting firm, the quality of the data entry didn’t improve enough to enable us to review financials in a reasonable timeframe. (Note: a reasonable timeframe can be defined as: soon enough to avoid making the same mistakes this month that we made last month.) As the company grows and does more business, accounting accuracy and timeliness become more important, and the CEO recognized that and wanted to make changes to fix Accounting, get the loaner employee back into Operations, and be able to capitalize on their renewed energy. Here are the steps we recommended to make the transition:
For most companies their people are their most valuable resource – where have you heard that before? Treat them fairly and they will treat you with strong loyalty. Our client is on the Inc. 500 list of best companies in America to work for. There’s a reason for that. How do we know?
We are Your CFO for Rent.