Change in Ownership
- November 29, 2020
- Posted by: admin
- Category: Finance & accounting
Significantly improved operating performance
SERVICE: CFO Consulting Services
Having timely, reliable financial details to management led to improved decision-making and a stronger relationship with the lender of the business.
A $40M local IT consultancy firm, overseeing a sales line that expanded by more than 40%, also underwent a shift of ownership. The company, which was very effective in its core competence, had never been able to generate reliable financial statements and therefore had never been able to assess the true performance of its operation or to investigate abnormality variance
- Generated a financial reporting package that included management information in a manner that was intuitive and actionable, made it easier to make real-time decisions and accurately forecast future challenges and opportunities.
- Automated the company’s billing process, reducing the time involved from days to hours.
- Demonstrated improved reporting accuracy; new systematic internal controls, and better forecasting of company lenders. In response, the lender was able to extend the company’s operating credit line, which was crucial given the company’s growth rate.
- Established key performance measures for the business and created performance metrics and visual scorecards.
Management obtained this information in real time, on a weekly basis. This made it possible to report in a collaborative environment that established team transparency and eventually dramatically improved operational efficiency.