Challenge: Accounting Department Turnover & Lack of Leadership
This large not-for-profit organization at one time had a Controller/CFO. When that individual left, a CPA was brought in to address day-to-day concerns, but there was no leadership in the finance department. This led to a number of issues, including:
• Payroll reports two quarters behind
• Finance department lacking management
• No bank reconciliations for more than six months
• High turnover
• No training on an implemented payroll system
• EFTs not reconciled within more than 10 accounts
• Cash flow problems
• No accounts receivable functions performed
• Financial audits identified multiple shortcomings
Fiscally, this organization was approaching crisis levels.
CFO for Hire had a number of initial objectives, many of which required immediate attention. They created an action plan to initiate some of the needed changes in the organization. One of the first accomplishments was to bring payroll reports up-to-date. Other initiatives included addressing cash flow problems, incorporating accounts receivable functions, and developing a process for payroll.
Over the course of several months, the CFO for Hire team, which included a payroll specialist, an EFT specialist, and a Controller/CFO specialist, were able to effect a significant turnaround of financial status for the organization. The organization stabilized, resolved payroll reports issues, and adopted new accounts receivable and payroll processes. CFO for Hire also aided the organization in selecting their own full-time controller, and imposed a smooth transition for the new hire and the organization.