Our client had been in business 12 years.
Growth and profitability had been reasonably
steady. The company was getting bigger, as
were the problems, risks, and opportunities.
The company had a controller and an accounting
clerk, both of whom had been there several
years. The main issue was that the company
had grown, but the controller had not. Virtual
CFOs was engaged to address that issue.
Our first step was
to assess the current situation, and to determine
where improvements were needed. We analyzed
the existing financial and operating information
reporting systems. We identified several
areas for which system modifications were
required to produce accurate and timely information.
We also recommended three new tracking and
reporting systems. These new systems provided
key decision-making information that had
not previously been available. The changes
represented the first steps toward bringing
financial function to a level that supported
its current size and its future aspirations.
We then began addressing
other concerns and identifying its risks
and opportunities. At this point the company
owner was ready to make a decision on the
controller. Early in the engagement we had
discussed his options. Virtual CFOs could:
- Make the necessary
improvements and changes to the company’s financial and operational
reporting systems, identify current risks
and opportunities, and enhance the existing
controller’s skills through training.
- Implement the same improvements as in
1 while assisting the client in hiring
a more skilled controller.
- Replace the controller,
becoming the client’s part-time
The client decided he would like us to take
the place of his controller. He would then
be able to continue to take advantage of
the higher level of skill and business insight
provided by his Virtual CFO. He appreciated
having a sounding board and a virtual business
We had determined that the
existing accounting clerk had excellent skills
and would be able to take on additional responsibilities.
Many of the tasks the controller had been doing
could be systematized, allowing them to be
completed by the accounting clerk. After
implementation of those changes, day-to-day
functions could be completed by the existing
accounting clerk plus a new, part-time clerk.
Virtual CFOs would be retained one day a
week to oversee and train the clerks, make
adjustments to systems and
assumptions, analyze results, help modify
strategic plans, and continuously monitor
growth, risk, opportunities and the business
environment. After the changes, the client
found he was actually spending less money
on his financial management function.