When you’ve been in the business for over 20 years, there are bound to be processes that desperately need re-vamping. Especially if you’ve grown from a small entrepreneurship into a successful multi-level business. Here’s how the Barnes Dennig Fractional Accounting and Advisory team made a major difference for a fast-growing company.
The challenge
A broadband consulting firm was transitioning from an outsourced solution to an in-house team to handle their rapidly growing needs. They needed a fractional controller and staff accountant to get their operations streamlined to super-charge their continued growth.
When our team came online for them, they were manually handling their Accounts Payable Process, with desktop accounting software on a remote server that wouldn’t connect to any banks. This required manual data entry of bank and credit card transactions.
The solution
Throughout the engagement, our fractional staff completely revamped their financial operations, starting with rethinking their accounting technology. Once the technology strategy was in place, they rapidly implemented process improvements to boost accuracy and efficiency.
Both our Fractional Controller and Accountant reviewed processes with management and provided their advice on best practices to get them back on track. After in-depth discussion of process improvements, management switched banks, implemented a new modern accounting system, discontinued use of their old software, and prepared to take their financial operations all digital.
After migrating the client from their desktop accounting software to cloud-based Online ERP system, the fractional staff accountant further optimized the financial recording process by implementing an online bill payment app, saving in-house resources significant amount of time formerly consumed by data entry and chasing down statements, invoices, and the like.
Checking all the boxes
With operations now online and processes streamlined for maximum efficiency, managing day-to-day accounting tasks like Accounts Payable and Accounts Receivable became the fractional staff accountant’s secondary priority.
While the fractional staff accountant recorded invoices and payments, they also ensured the timely processing of customer billings and assisted with execution and delivery of financial reports leading to faster decision-making opportunities for leadership. In addition, the fractional team continued to work closely with company management, assisting with state registrations and completed registrations to file and pay payroll taxes for each state and locality.
With the accountant ensuring day-to-day financial tasks and compliance were running smoothly, the controller focused on the high-level oversight and financial performance aspects and strategies. Like some similar consulting firms, the client offered an Employee Stock Ownership Plan (ESOP). This required them to switch from cash basis accounting to accrual basis accounting. After an in-depth review and discussion with management, our fractional team facilitated the transition between accounting methods and helped the client set a plan to defer revenue and record prepaid expenses more strictly.
As with most of our Fractional clients, once their financial situation was in order, the client saw a period of promising growth and foresaw their needs would require a full-time resource. To help facilitate a smooth transition, the staff accountant assisted the client with interviewing and onboarding a full-time Director of Accounting & Finance. By the time our Controller officially handed over the reins to the new Director, their formerly manual accounting system was online, connected, and running faster than ever before – and the business had a smooth runway for continued rapid growth.
More Resources
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, technology, 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.
If you think this type of accounting relationship would benefit your business, 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.