CFO Leave

Overview

Overview

THE CHALLENGE: The consulting team of Grassi & Co. received a call from a $20 million professional services client stating that their current CFO would be leaving at the end of the following week and they needed assistance in uncovering the daily duties performed by the CFO in order to cover his leave.

OUR APPROACH: 

1.Our professionals learned the duties performed only by the CFO, such as processing payroll, submitting 401K contributions, managing daily banking tasks, using the ERP system in regard to general ledger entries and preparing monthly financial statements.

2. Met with the accounting staff to develop a strategy to proceed until a permanent replacement was hired.

3. Performed staffing review and determined appropriate placement of accounting department based on needs of the department in order to develop proper procedures. Our team reassigned responsibilities based on those needs and ensured sufficient resources were invested in the collection function on a regular basis.

4. Once the client was operating in a business-as-usual environment, we reviewed accounts receivable and re-engineered procedures for credit and collections. As a result of these new procedures, we were able to write off old recievables that management deemed
“uncollectible”, initiated a call schedule to ensure all accounts were being monitored, and engaged the services of a collection attorney who successfully collected a substantial amount of “old money”.

IMPACT: How We Brought Value:

On a budget of only two days per week, the interim CFO was able to transition out of the role two weeks after the permanent replacement's first day on the job. The client suffered no business disruption as the Business Advisory team went about settling in and executing the various functions previously handled by the previous CFO. In addition, effective procedures were initiated to significantly improve the collection function, and within a short time, the client's cash flow and bank balance were the best they enjoyed in many years. Billing procedures were streamlined, including electronic transmission, resulting in improved cash flow and a reduction of handling time and postage expenses.

For more information about how our CFO Advisory Services can help your organization, contact Bruce Latman at BLatman@grassicpas.com.
 

Team

Bruce Latman Consulting Manager