Accounting Operations Turnaround

Accounting Operations Turnaround

As a business grows, the improvement in accounting operations often falls behind the creation of sales processes, development of institutional technology requirements and improvements in the business’ products and services.

But eventually, accounting operations becomes critical, as the business needs to obtain financing, get investors or prepare for a successful exit.  As these priorities emerge, certain issues become more challenging, including:

  • Cash flow problems

  • Vendor payment issues

  • Commission calculation errors

  • Inaccurate financial information

  • Delays in getting data to the CPA to prepare the tax return

  • Overwhelmed accounting staff

  • No budgets

Capital CFO Services helps business owners and CEOs resolve these issues by providing leadership in the following areas:

  • Develop accrual basis financial statements to support financing requests.

  • Examine of the general ledger and consolidation of expenses by “thought units” – for example Compensation & Benefits, Travel & Entertainment, Marketing, Technical Costs, Office Expenses, and Corporate Overhead Expenses so the owner can easily understand the company’s expense structure.

  • Create monthly financial statements to enable the owner to understand the monthly and seasonal fluctuations of the business.

  • Segregate expenses so the owner can easily track EBITDA.

  • Identify and track key business metrics that are critical to the business model.

  • Train the accounting personnel to complete their jobs more effectively and efficiently and to easily maintain this information.

  • Review all of this information with the owner to improve his/her knowledge of the financial health of the business.

  • Coordinate the communications between the owner and the CPA to ensure that both individuals understand the issues that could significantly impact the business.

  • Prepare the information necessary for the CPA to complete the various business tax returns.

  • Develop annual budgets and periodic forecasts.