Lack of Policies, Procedures & Documentation

Challenge: Lack of Policies, Procedures & Documentation


Initial Status:
The organization had recently lost its bookkeeper, and thereby its accounting department. None of the management staff had any accounting acumen. Upon initial investigation, CFO for Hire determined there were multiple accounting tasks that had not been completed while the previous bookkeeper was on staff. Among the work left undone were bank reconciliations, proper general ledger postings, and audit work papers. Additionally, there were no written procedures and no way to determine what process was being utilized to track, record and perform accounting functions. This organization, like many other private corporations and other non-profits, had well-meaning but ill-equipped personnel in the accounting role.

Initial Solutions:
CFO for Hire initially acted as an “interim fix” to accomplish day-to-day functions; organized the accounting processes, reconciled the balance sheets, and performed updated bank reconciliation, in addition to fixing improper postings. Within two months, CFO for Hire produced an accurate, clean income statement and a balance sheet for the organization’s Board of Directors.

CFO for Hire prepared a formal presentation, including the beginning trial balance and revised trial balance; errors were corrected in every account; and the revised trial balance was accepted as the updated balance. Next, CFO for Hire wrote procedures for the organization’s accounting personnel to provide a complete picture of what was necessary to balance the organization’s books.

Soon after, the organization hired a new individual to fill the accountant position. CFO for Hire trained the new staff member for two weeks on procedures and processes to affect an easy transition. CFO for Hire then provided oversight of the new accountant.