Fractional Accounting Case Study
For a red-hot startup building a client base, hiring multiple full-time financial personnel might not be feasible. But the consequences of not having these skills on your leadership team can be even more costly. That’s where Barnes Dennig’s fractional accounting and advisory team can change the game.
A fast-growing managed service provider (MSP) needed a fractional Division Controller for the two entities they owned.
One of our innovative on-top and on-the-spot fractional controllers stepped in, completing month-end close procedures including posting journal entries and reconciliations, assisting with questions that came up throughout the month, reviewing payroll, and providing insights in weekly AR and AP meetings.
Adapting to an acquisition
One of the entities had been recently acquired, so on top of the typical month-end procedures, they asked our fractional pro to assist with the consolidation of data. Since the CFO and Controller were still getting to know the new acquisition, many of the questions she asked, they also needed answered. All three jumped into messy financials together. Deep-dive collaboration with the newly acquired entity’s team enabled fast-tracked learning of processes so the team could take over closing the books in record time.
Our fractional controller also worked with this newly acquired entity’s previous accountant to learn how the financials had been historically prepared and books historically closed, using this information to successfully transition them to the purchasing company’s procedures. She also assisted in the transfer of financial data from QuickBooks Desktop to Business Central, streamlined the commission calculation process, and created balance sheet reconciliations from scratch.
By the end of the engagement, the acquired entity had been successfully transitioned into the overall company and all its financials connected and consistent with compliance standards – halving the time and effort if the client’s already busy team had to squeeze it in between other priorities.
An asset to the overworked executive
When our fractional controller rolled onto the engagement, the company’s CFO, controller, and accounting staff were working unsustainable hours and battling burnout, especially getting the books closed on time by month-end. When our fractional controller took over the newly acquired entity’s transition into the larger company, the CFO and Controller were able to focus on the bigger picture and drive better bottom-line business results.
Our fractional controller simplified things for the CFO, controller, and team by communicating with far-flung resources throughout the organizations, mapping out the tasks at hand, and finding innovative ways to track down key information. Using a strategic combination of financial analysis skills and project management expertise, she found most of the answers – and carefully prepared the remaining questions for meetings with the CFO.
There were also many smaller projects the CFO didn’t have the time to complete that our fractional controller was able to take on, including creating and updating a cash forecast, manually creating financial statements based on data provided for another small entity, and completing an audit of their healthcare costs. Throughout the engagement, our fractional controller increased the financial team’s efficiency and well-being by taking some tasks off their plates, allowing the executives to address other priorities and work fewer late nights.
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Does your company need a financial professional to get your operations in order? Our fractional accounting and advisory staff could be the solution to help your business or organization navigate financial strategies, operations, and industry standards. Check out our Fractional Accounting FAQs or contact us for a free consultation to see if our fractional services could add the value you need.
You might also be interested in the Fractional CFO Guide to Success – packed with ideas and insights to help you get the most from your fractional CFO engagement, reduce financial risk, and drive strategic growth. Get your copy now, and unlock the doorway to better business results.