Restoring Financial Clarity & Stakeholder Confidence
AT A GLANCE
Challenges:
Leadership gap during audit process
Urgent regulatory & compliance requirements
Lender pressure
Key Takeaways:
Division-specific forecast enabled strategic decisions
Financial reporting aligned ops with plan
Month-end close process and balance sheet cleanup
OVERVIEW
Following the departure of the company’s controller, the accounting team was finance-focused and lacked GAAP-specific expertise. Capstone had fallen out of covenant with its bank due to continued job losses. As part of the audit, the auditors were issuing a going concern opinion and requested a plan to address the company’s cash flow and profitability challenges, which required the development of a forecast model. Turning Point was engaged to prepare the forecast and establish a new financial reporting process to help management better understand the company’s performance issues.
ACTIONS
Developed a dynamic financial forecast model to help management identify cost-cutting opportunities and adjust pricing strategies to move toward positive cash flow.
Prepared a comprehensive financial reporting package comparing actuals to budget; facilitated monthly variance reviews with management to improve visibility into project and financial performance.
Supported the month-end close process, partnering with the Director of Finance and implementing a structured close workbook to ensure timely and accurate reconciliation of all balance sheet accounts.
RESULTS
Rebuilt bank confidence in the company’s financial integrity
Restored auditor trust in the accuracy of financial reporting
Equipped management with clearer insight into financial performance
Provided continuity and support during the controller transition
“When our controller left unexpectedly, it couldn’t have come at a worse time. We were in the middle of an audit and also needed a forecast model, with project revenue still recovering from the impact of the pandemic.
After scrambling for help, we were referred to Turning Point. Their team jumped in quickly, got up to speed on the controller role, and began working closely with our accounting team to provide support and guidance. They worked alongside us rather than just advising from the outside, helping us shape our financial reporting process and making sure our team understood it just as well as they did.
Because of their solutions, we began providing clear and consistent reporting to our bank, which also kept us on track with our financial plan. In the process, we rebuilt our lender’s trust.
We continue to work with Turning Point, and they’ve been a steady partner as we navigate new challenges. With clearly defined roles and better visibility into our finances, we feel more confident about where we’re headed and how to manage what comes next.”
-ANNA BLANK, VP OF FINANCE, CAPSTONE SOLUTIONS
