As this company grew to five locations, the owner realized the need for executive level accounting and financial management. He needed someone with CFO-level knowledge, but realized that the company still did not require a full-time CFO position.
The client engaged Warren Whitney to fill the need for a part-time CFO. Rique Flato served as the primary professional working one or two days per week and providing oversight of the client’s bookkeeper and the preparation of financial statements.
Rique began his process by providing additional training to the client’s bookkeeper. He trained her to prepare proper monthly financial statements and perform most of the duties of an accountant. Rique looked at the accounting processes and procedures and saw an opportunity for improvement. The changes Rique instituted included:
- Segregating financial reporting by branch to provide clarity.
- Showing both consolidated and branch budgeting.
- Outsourcing payroll to increase efficiency.
In the process of working with the client, Rique brought the company’s financials up to date and developed a clearer picture of the client’s financial performance. As a result of the greater clarity, the client was able to explore further expansion into new markets. Rique assisted in the planning for expansion by:
- Creating pro forma financials and budgeting.
- Interviewing the management team.
- Assessing capital for a new branch.
The organization added six new members to the board to replace departed board members, and added two people to fill vacancies. The work continues because board cultivation is an ongoing process, and there has been a natural change in the composition of the board cultivation committee.