In 2003, the company had low profitability and a low performing accounting function. The assignment was to assess the company’s overall business potential and to upgrade the F&A to provide relevant assist to the decision making process; this encompassed:
- Electronic accounting
- The development of new financial formats
- Progress reports to senior management
- Improved cash-monitoring and management
MSNCFO recruited an accountant and revamped all the reporting systems and routines to yield relevant reports in a timely manner. We prepared comprehensive draft financials for the CPA, reducing review time and expenses and instituted a cost savings plan that reviewed all expenses, brought in in-house repair services; we developed a bonus plan to participate in savings, as well as set up teams, meetings, and periodic reviews to ensure efficient implementation of the change plan. In addition, we repositioned the company with the business bank, and obtained an equipment line of credit and working capital. We then began reporting to the bank on loan covenants, and supervising the bank audit. MSNCFO also obtained lease financing from Enterprise Rent-A-Car for a fleet of mini vans, and commenced a strategic planning capability with a company-wide team, doing a SWOT analysis and coming up with an action plan. We also reviewed the affiliate networks to further improve relations, and evaluated acquisition candidates by doing due diligence.
- Profits increased by 25% in the first year due to internal savings and adjustments
- Financing facilities were increased, interest rate was lowered, and banking relationships were improved due to good reporting and satisfying the audit.
- For the first time, CPA-reviewed financials were comprehensive
- Relevant reports and reviews are now able to aid in making good decisions.