Accounting Workflow and System Optimization

Challenge

The married co-owners of a family manufacturing company determined it was time to prepare for retirement. They wanted to transfer ownership of their 25-year-old business to their three adult children, who would assume active roles in the business.

Without a formal accounting background, Mom had been handling the books and payroll since the company’s inception. The family agreed that as the business grew, the accounting system and payroll processes needed updating to ensure a smooth transition and sustainable future.

The eldest son, who was the acting vice president, was poised to become president. He envisioned having accurate financial information at his fingertips, which would enable better cost-analysis of product lines, overhead, budgeting and a good foundation for anticipated expansion.

Innovative Approach

At the time Fischer Cunnane became engaged, the company employed about 25 people. Over a six-months period, we phased in new procedures and ironed out existing issues with accounts payable and expense reimbursements.

• Streamlined accounts payable by introducing bill.com software, which enabled management to delegate expense approvals to the responsible parties and maintain accountability.
• Automated the company’s dated expense-reimbursement procedure with the Certify platform. A program that integrated with their existing accounting platform, it enabled employees to submit receipt images online, while department heads could easily approve and authorize reimbursement.
• Moved the company to an accrual basis, providing a more accurate representation of the business and enabling management to perform more timely cost and profitability analysis.
• Trained staff to handle day-to-day payables and receivables, prepare monthly financials and created supporting schedules.
• Developed and implemented control mechanisms to ensure accuracy and introduce checks and balances.

Outcomes

The company’s accounting system was revamped to scale as the company grows. Under the leadership of the eldest son, the company now has 100 employees. His siblings have management roles, their parents are board members, and the individual we trained was elevated to an accounting specialist role. The accounting systems are streamlined, especially accounts payable, accounts receivable, and payroll along with up-to-date financial information. Integrated online platforms simplified accounts payable and expenses reimbursements. Fischer Cunnane continues to provide month-end closings, perform ad hoc projects, and serve as a sounding board as issues arise.