Client Examples - Distribution
International public company, provider of supply chain technologies
Service Provided: Controller ServicesSituation
The client needed an interim controller while they conducted a search for a permanent controller.
Our Role
GFO was engaged to manage the client's accounting operations.
Result
The client was arrears in closing their books. Within the first two weeks GFO managed two month-end closings. We subsequently managed a quarter-end close and two more month-end closes. Among other matters, this involved balance sheet reconciliation and posting of adjusting journal entries. Streamlining of the general ledger close process was achieved by consolidating the accounting operations of the European operations with those at headquarters. GFO subsequently provided training for the new controller.
Private company, landscape materials wholesaler
Service Provided: Business Valuation ServicesSituation
In her will, the owner of record left the business and accompanying real estate to her children. The business was being run by the brother and was losing money. The sisters wanted an evaluation of the business to determine its worth.
Our Role
At the recommendation of the client's attorney, GFO was engaged by the client to conduct a business valuation.
Result
GFO essentially acted as the client's Controller. We reconciled their general ledger, which had never been done. This allowed us to generate accurate, real time financials for the client. Based upon accurate historical data and current sales records we were able to prepare financial projections, including cash flow forecasts, which were critical in analyzing the client's working capital needs. With this information we were then able to provide the heirs of the estate with a valuation for the landscape materials business. We also establish controls to significantly reduce inventory shrinkage and unauthorized purchases. Along with other changes to their operating procedures helped reduce operating costs and increased profitability by an estimated 5%.
Private company, landscape materials wholesaler
Service Provided: Controller ServicesSituation
Although the client had increasing revenues, their gross margins were shrinking significantly. They were reporting a net loss. Due primarily to the seasonal nature of their business they had severe cash flow restrictions. The client had not had a Controller for several months, resulting in inaccurate financials and lack of compliance with their borrowing agreement covenants.
Our Role
GFO was engaged by the client as a part-time Controller. In this capacity we took over management of the client's accounting functions. We were subsequently engaged to restructure the client's debt obligations.
Result
We acted as the Controller for three months, during which time we assumed responsibility for all accounting operations. We reconciled their general ledger, which had not been done in several months. This allowed us to generate accurate, real time financials for the client. Based upon accurate historical data and current sales records we were able to prepare financial projections, including cash flow forecasts, which were critical in analyzing the client's working capital needs. We then prepared a working capital plan that would provide necessary cash during their off-season months. GFO solicited and reviewed several proposals from various asset based lenders, helping the client select a lender that was willing to work within the context of the plan prepared by GFO.
Private startup beer importer
Service Provided: Controller ServicesSituation
As with most small startups, cash management was a significant challenge for this client. The company lacked accounting infrastructure and financial controls. They also needed expertise in managing the foreign exchange rates with Germany and with Ireland.
Our Role
GFO was hired to act as the client's accounting controller.
Result
GFO set up and managed the client's accounting functions, which included implementing a financial system, establishing the general ledger, managing cash flow, providing detailed pro forma financials, negotiations with lending institutions, and negotiations with suppliers.