Change in Ownership
The Turning Point CFO advisory arm significantly improved operating performance.
“Getting timely, accurate financial information to management led to improved decision making and a better relationship with the company’s lender.”
Overview:
A $40M local IT consulting company, managing a sales line that was growing at over 40%, was also undergoing a change in ownership. The company, very successful in its core competency, had never been able to produce accurate financial statements and therefore had never been able to determine its true operatiions performance or to investigate abnormal variance.
Actions:
Created a financial reporting package that delivered information to management in a way that was understandable and actionable, enabling real-time decisions and accurate prediction of upcoming challenges and opportunities.
Automated the company’s invoicing process, reducing the time involved from days to hours.
Demonstrated improved accuracy of reporting; new, systematic internal controls, and better forecasting to the company’s lender. The lender, in response, was able to expand the company’s working line of credit, which was vital, given the company’s growth rate.
Identified the company’s key performance indicators and developed performance metrics and visual scorecards.
Results / Key Takeaways:
Management received this information in real-time, weekly. This allowed for reporting in a collaborative setting, which created team accountability and ultimately significantly improved operating performance.
