Case Studies
Transforming Finance Operations for a National Manufacturing Leader
Background
A national manufacturing company had grown rapidly through organic expansion, becoming a dominant force in its industry. However, behind the scenes, the business was grappling with outdated systems and inconsistent internal processes. Financial data was fragmented, policy manuals were long obsolete, and leadership struggled to access accurate, timely reports to guide fact-based decision-making.
Their Challenge
Years of unchecked growth have created a complex web of manual processes, inefficient workflows, and unnecessary headcount. There was no standardized way to track performance or report on results, and management’s ability to make data-informed decisions had eroded. The company knew it needed to overhaul its finance operations—not only to regain control and insight but also to reduce operating expenses by at least 12%.
The Solution
The CFO team engaged with stakeholders across every part of the business to align on a shared vision. Together, they created a detailed blueprint that outlined how to restructure financial operations from the ground up. This included identifying all key risks, defining cost and time impacts, and establishing clear milestones. Enhanced internal controls, best-practice policies, and customized workflows were implemented to drive consistency and accountability. A new accounting system was implemented, which accounted for production, custom product builds, and real-time inventory controls.
Just-In-Time manufacturing principles and advanced logistics systems were introduced to improve cash flow, reduce inventory holdings, and increase inventory turnover. Real-time dashboards, performance metrics, and GAAP-compliant reporting tools empowered leadership with visibility like never before. The project also focused on organizational restructuring—reducing redundancy, compressing the corporate hierarchy, and improving efficiency at every level.
The Impact
The transformation not only met but exceeded expectations. Expense reductions in the first year surpassed 20%, far beyond the initial 12% goal. Financial reporting became faster, more accurate, and available on demand. Leadership regained confidence in their data, and the business was equipped with a flexible, future-ready finance system. What started as a cost-cutting initiative ultimately became a full-scale operational breakthrough.
Securing $1.5 Million in Growth Capital for a Commodity Brokerage
Background
A mid-sized, family-owned commodity brokerage was thriving on the surface—revenues were climbing, and demand was strong. But as the business scaled, it began to outgrow its available cash. To continue their trajectory without giving up equity, the owners needed to secure a $1.5 million debt facility to fund operations and growth.
Their Challenge
Despite healthy profits, the company faced tightening margins due to global macroeconomic pressures. The commodity nature of the business made traditional lenders hesitant, viewing it as high-risk. Those who were interested demanded more than historical financials—they wanted a clear and reliable system for ongoing transparency, projections, and performance tracking. The company didn’t yet have the financial infrastructure to meet those expectations.
The Solution
Business CFO for Hire stepped in to build lender confidence and position the company for funding success. First, they introduced best practices for internal controls and formalized financial policies and procedures. Then, they developed a robust financial model capable of delivering accurate projections across cost centers, identifying performance gaps, and providing timely financial consolidations. The system gave stakeholders a clear line of sight into both current performance and future potential.
Results
With a credible, transparent financial process in place, the company secured the full $1.5 million debt facility—on favorable terms and without sacrificing ownership. The new system didn’t just unlock capital; it gave leadership a better grasp on the financial mechanics of the business. What began as a short-term cash need turned into a long-term upgrade in operational discipline and strategic confidence.
Risk Mitigation: Identifying Risk Prevents a Financial Catastrophe
Background
A well-established company sought greater clarity around its risk exposure—both known and unknown. With operations expanding and complexity increasing, leadership recognized the need for a holistic risk assessment that extended beyond surface-level evaluations. The goal was to gain a full picture of potential vulnerabilities, from internal operations to industry-specific threats, and ensure that existing insurance coverage aligned with real-world risks.
Their Challenge
While the executive team believed most major risks were already covered, a series of in-depth discussions revealed several gaps—both explicit and hidden. Stakeholders had varying perceptions of the company’s exposure, and there was no unified view of risk tolerance, insurance adequacy, or potential consequences. Existing insurance policies hadn’t been reviewed comprehensively, and there was no clear strategy for mitigating high-impact events.
Through this process, new risks emerged—as they often do. It became clear that the company needed to define its appetite for self-insurance, understand its true out-of-pocket exposure, and address any gaps before they could be tested in a crisis.
The Solution
Our CFO conducted a thorough review of all existing insurance policies and risk mitigation strategies. Two critical issues were uncovered: the company lacked business interruption insurance, and their current broker had failed to offer a comprehensive, aligned coverage strategy.
A new broker was engaged—one who understood the company’s risk profile and could deliver a tailored, end-to-end solution. Updated coverage was implemented, bringing policies in line with actual exposures and ensuring executive decision-makers had the tools to act proactively.
Impact
Nine months after the new policies were put in place, the unthinkable happened: a fire brought production to a complete halt for a full year. Thanks to the newly added business interruption insurance, the company avoided financial disaster. The policy covered critical losses, allowing the business to stay afloat during a prolonged shutdown.
Had the review and changes not occurred, the client would have faced bankruptcy—unable to shoulder the fiscal burden of a 12-month operational stoppage. Instead, the business survived the crisis intact, proving the value of identifying risk before it becomes reality.
The Power of Financial Visibility – Where Did All the Money Go?
Background
A financier reached out with a puzzling situation: one of their clients, a fast-growing service provider, was thriving in sales but struggling with cash flow. On paper, everything looked great—revenue was up, the pipeline was full, and new business was pouring in. Yet the company was bleeding funds, and no one could pinpoint why.
Their Challenge
Within a single day of meeting with the company’s stakeholders, the root causes began to surface. The business’s bookkeeping was managed by a well-meaning but unqualified friend of the family. The owner, while talented and growth-focused, lacked a strong grasp of financial fundamentals and leaned too heavily on a “cheap” advisor to guide the company’s strategy.
That advisor had developed a fiscal model that, in theory, could have worked. But it was never implemented properly, nor was it measured or maintained. Worse, the model itself had major cost analysis flaws—missteps that silently drained the company’s cash reserves. On top of that, there were no inventory controls, no job costing system, and no project management in place. The business was scaling fast, but without a solid operational or financial foundation.
The Solution
The turnaround began with a full overhaul of the fiscal model. The owner was challenged to rethink the fundamentals of the business. A common entrepreneurial trap is trying to be the cheapest, the highest quality, and the best service provider—all at once. But in reality, you can only succeed at two. Competing on price alone is a race to the bottom, and someone will always be willing to undercut you.
A new business model was developed—one that addressed every layer of operations at the micro level. This included detailed pricing strategies, quality benchmarks, project efficiency metrics, client profiling, and brand development. Project recall tracking was introduced to monitor outcomes, and inventory management processes were established to reduce waste and tighten control.
Equally important was aligning the business with the right financial partner. Not all capital is created equal, and the wrong funding can be just as damaging as no funding at all. Key performance indicators (KPIs), ROI tracking, and financial trend analysis were implemented to help guide day-to-day decisions and improve long-term visibility.
Results
The bleeding stopped. With better controls, a solid fiscal model, and a data-driven strategy in place, the business stabilized and began operating profitably again. Sales remained strong—but this time, so did the bottom line. By pairing financial structure with operational discipline, the company turned its growth into sustainable success.
Transforming a Vertically Integrated Manufacturing Company Through Transparency and Operational Efficiency
Background
A mid-sized, vertically integrated manufacturing company with $15M in annual sales faced challenges related to cost transparency, siloed operations, and inefficiencies across departments. Despite strong market demand, outdated systems and limited accountability hindered growth and margin improvement. Leadership recognized the need for a comprehensive operational overhaul to unlock scalability and profitability.
Their Challenges
- Limited visibility into true product and department-level costing.
- Disconnected software systems between manufacturing, inventory, sales, and finance.
- Budgets not aligned with actual operational realities.
- Lack of accountability due to unclear department ownership of KPIs.
- Inefficient procurement practices with no leverage of vendor rebates or consolidated buying power.
- Monthly accounting processes delayed decision-making and responsiveness.
The Solution
Strategic Actions
ERP Upgrade & System Integration
- Upgraded to a modern ERP platform with full integration across manufacturing, inventory, sales, procurement, and finance.
- Standardized workflows and data capture so all operational metrics fed into a central system.
Departmental Accountability & KPI Framework
- Established department-specific KPIs aligned to company goals.
- Assigned clear ownership of each KPI to relevant department heads.
- Linked KPIs to variance reporting and departmental results in monthly management reviews.
Budgeting & Segregated Accounting
- Implemented department-level budgets with roll-ups to corporate reporting.
- Segregated accounting under each business unit for precise performance tracking.
- Produced timely and accurate monthly accounting statements to enable faster decision-making.
Procurement & Vendor Strategy
- Consolidated purchases across departments to maximize volume discounts.
- Negotiated agreements with preferred vendors.
- Introduced a mandatory rebate program with qualifying vendors to capture additional margin.
Results
- Sales Growth: Revenue expanded from $10M to $65M over three years through improved operational capacity and market responsiveness.
- Gross Profit Margin: Increased from 40% to 52%, driven by cost transparency, vendor rebates, and manufacturing efficiencies.
- EBITDA Margin: Grew from 7% to 10%, reflecting disciplined cost management and the elimination of waste.
- Operational Transparency: Real-time access to product and department-level costing enabled smarter pricing, sales strategies, and resource allocation.
- Cultural Shift: Departmental KPI ownership fostered accountability, efficiency, and a performance-focused culture.
Key Lessons
- Integrated Systems Unlock Efficiency: A single source of truth eliminates delays and enables confident decision-making.
- Accountability Drives Results: Assigning KPI ownership turns metrics into action and boosts profitability.
- Strategic Procurement Saves Millions: Consolidated buying and rebate programs directly contribute to margin improvements.
- Timely Data Transforms Agility: Monthly variance reporting allows leadership to address issues before they escalate.
Transforming a Struggling Service Company into a Private Equity Success
Background
A mid-market turnaround services company with $40M annual revenue was operating with outdated and manual back-office processes. Accounting was maintained in Excel spreadsheets, tax filings were five years in arrears, and there was no standardized revenue recognition policy. Operational inefficiencies limited scalability, visibility, and profitability, hindering growth opportunities and eroding valuation.
Five years later, the company was sold to a private equity (PE) firm, followed by a successful post-acquisition integration into the portfolio’s enterprise ERP platform. This journey from operational distress to an attractive PE acquisition target was driven by a comprehensive operational and financial transformation.
Their Challenges
- No formal ERP system: Operations relied entirely on Excel, leading to errors, lack of audit trails, and minimal real-time visibility.
- Tax filing delinquency: Five years behind on corporate income and payroll tax submissions, creating both compliance and cash flow risks.
- Improper revenue recognition: Billings were recorded as revenue without alignment to GAAP, distorting financial performance metrics.
- Process inconsistencies: Lack of documented procedures for billing, collections, purchasing, and reporting.
- Stalled revenue streams: The company had no technology-enabled offering to generate new income or improve customer experience.
The Solution
Strategic Actions
ERP Transformation
- Led selection and implementation of a modern ERP platform tailored to service industry operations.
- Migrated five years of historical financial and operational data from Excel into the new ERP.
- Streamlined chart of accounts and reporting structure to align with both GAAP and management reporting needs.
Compliance and Financial Controls
- Coordinated with tax advisors to file all outstanding federal, state, and payroll tax returns, eliminating compliance exposures.
- Introduced month-end close discipline with reconciliations, accrual processes, and variance analyses.
- Implemented GAAP-compliant revenue recognition based on work completion and contract milestones.
Process and Procedure Modernization
- Documented and rolled out standard operating procedures for accounts receivable, accounts payable, procurement, and payroll.
- Introduced KPI dashboards for operational and financial performance tracking.
- Established internal audit protocols to ensure continued compliance and accuracy.
New Revenue Stream Development
- Conceived and led the development of a custom online interface from the ground up, enabling a new digital service offering for customers.
- Managed cross-functional team of developers, operations, and marketing to launch in under 9 months.
- Achieved profitability in the first year, driving 25% revenue growth and 15% EBITDA improvement.
Sale to PE Firm
- Positioned the company for acquisition by showcasing improved financial transparency, recurring revenue, operational scalability, and compliance readiness.
- Orchestrated due diligence with clean, audit-ready financial statements, resulting in a premium valuation.
PE Post-Acquisition Integration
- Transitioned company data and processes into the PE portfolio’s enterprise-wide ERP solution.
- Unified reporting, forecasting, and KPI measurement across the newco.
- Trained finance and operations teams on new systems and workflows to ensure adoption and minimize disruption
The Impact
- Financial Turnaround: From negative cash flow and compliance risk to sustained profitability and healthy EBITDA margins.
- Revenue Growth: +25% within first year of introducing the new digital offering.
- EBITDA Improvement: +15% resulting from operational efficiencies and new revenue streams.
- Compliance Restored: All tax filings updated and processes in place to maintain compliance.
- Premium Exit: Sold to a PE firm at a valuation multiple above industry average.
- Post-Acquisition Success: Smooth integration into newco ERP, laying foundation for further scaling under PE ownership.
Transforming a Legal Professional Service Company’s Bookkeeping
Background
A mid-sized legal professional service company had its bookkeeping managed by an external CPA bookkeeping department on a cash basis. The company operated without any ERP integration or meaningful reporting and timely management accounts. The bookkeeping process was manual, with no online document management system (DMS), and payments were primarily made through manual check-writing processes.
Their Challenges
This operational state resulted in inefficiencies, slow financial insights, and limited control over cash flow and spending patterns. Internal controls around payments were minimal, exposing the firm to risks associated with manual payment processing and limited audit trails.
- No Timeline Consistency: The CPA bookkeeping department didn’t meet timelines for management accounts, delaying critical financial insights and decision-making.
- Lack of Integration: There was no ERP system integration, leading to siloed financial data and manual data handling.
- Absence of KPI and Spend Reporting: Without KPIs or spend reporting, the firm lacked visibility into financial performance and cost control.
- Manual Check Writing: Payment processes were reliant on manual check writing, increasing the risk of fraud, errors, and delayed payments.
- No Online DMS: Document management was offline and fragmented, making access and audit preparation challenging.
- Weak Internal Controls: With manual processes and insufficient oversight on payments, the firm faced potential vulnerabilities in financial controls. or improve customer experience.
The Solution
Working with management we undertook a multi-step transformation focusing on modernizing bookkeeping, reporting and payment processes:
- Electronic Payments Implementation: The firm transitioned from manual check writing to electronic payments, including ACH and e-checks. This shift enhanced payment processing speed, reduced errors, and strengthened payment audit trails. Actual spend decreased, improving cashflow and cash retention – associated costs diminished by 75%
- Strengthening Internal Controls: They introduced robust internal control procedures for electronic payments. This included segregation of duties in payment initiation and approval, role-based access controls, vendor verification protocols, and enhanced reconciliation processes aligned with compliance requirements.
- Bookkeeping Process Improvements: For effective business oversight, we implemented a process to convert the company’s financial reporting from cash to accrual for management purposes, while continuing to maintain cash-basis accounting for IRS compliance. This dual approach ensures that leadership has timely, accurate visibility into revenues earned, expenses incurred, and true profitability, enabling better forecasting and strategic decision-making, without altering the tax reporting method. To support this, we built a robust accounting department with clearly defined roles and responsibilities, streamlined workflows, and a strong culture of cohesiveness and shared accountability. This team-based philosophy not only strengthened internal controls and reporting accuracy but also enhanced collaboration across the organization, ensuring financial information serves both statutory and strategic needs.
- ERP, Accounting, Electronic Process and Document Management Integration: The firm integrated an ERP system tailored to professional services and adopted an online document management system (DMS). Furthermore, accounting and electronic processesing where integrated, for increased efficiency, cost effectiveness and transparency. This allowed centralized financial data, automated data flows, and easy digital document access.
- KPI and Spend Reporting Development: They developed key performance indicators relevant to legal services, such as realization rates and billing turnaround times, alongside detailed spend and cost reporting, providing actionable financial insights for management.
The Impact
Faster and Accurate Payments: The transition to electronic payments reduced payment processing time from days or weeks to often same or next-day settlements, improving vendor relationships and cash flow predictability. Similarly, clients could remit payments for both escrow and non-escrow invoicing, which significantly improved collection form 6 weeks to 2,5 weeks on average.
- Improved Internal Controls and Compliance: Segregation of duties, vendor verification, and audit-ready electronic payment records significantly reduced fraud risk and enhanced SOX compliance where applicable.
- Timely Management Reporting: Meeting bookkeeping timelines enabled management to get monthly financial accounts, improving budgeting, forecasting, and decision-making.
- Operational Efficiency: ERP and online DMS integrations reduced manual data entry, minimized errors, and centralized data access for finance and legal teams.
- Enhanced Financial Visibility: Regular KPI and spend reports equipped leadership with insights to optimize resource allocation, control costs, and identify revenue opportunities.
- Reduced Operating Risks: Automated payment workflows and policies strengthened control over cash disbursements and vendor payments, securing the firm’s financial operations.
MSP Lack of Visibility and Efficiencies: Questioning KPI Accuracy
Background
An emerging Managed Service Provider (MSP) with $12 million in annual revenue and 30 employees operates primarily virtually, with team members coming into the office once a week for collaboration and strategic alignment. The client base comprises small and medium businesses seeking reliable IT management services. The MSP aims to scale efficiently while balancing remote work flexibility and maintaining high employee productivity and engagement.
Their Challenges
- Lack of real-time visibility into operational and employee performance due to distributed work locations.
- Difficulty in monitoring productivity and workload balance across technicians and support staff.
- Limited transparency on customer satisfaction and service responsiveness.
- Employee engagement and motivation risks within a primarily virtual environment.
- Need for transparent, data-driven KPIs to align organizational goals and incentivize performance.
- Questioning both KPI choice and validity as well as the accuracy thereof?
The Solution
Implemented Solutions and Strategies
- Adopted centralized MSP management and analytics tools to collect data on ticket resolution, response times, recurring incidents, and service-level agreement (SLA) compliance.
- Established key operational KPIs, such as Monthly Recurring Revenue (MRR), technician utilization rates, and first contact resolution rates, to monitor business health and team productivity.
- Implemented structured employee performance metrics including tickets closed per technician per day and average first response time to measure individual and team effectiveness.
- Integrated customer satisfaction metrics through Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) surveys to assess client experience and service quality.
- Designed an employee incentive program combining productivity bonuses (based on KPI achievements), recognition awards, and gamification elements to foster engagement and ownership of tasks.
- Addressed potential burnout and motivation loss by varying task complexity, encouraging autonomy, and facilitating peer mentorship arrangements.
- Used weekly in-person meetings for team building, knowledge sharing, and aligning on goals while maintaining operational flexibility with remote work.
Key KPIs to Monitor
Key KPIs to Monitor
- Monthly Recurring Revenue (MRR)
- Gross Profit Margin
- Customer Lifetime Value (CLV)
- Revenue Growth Rate
Operational KPIs:
- Technician Utilization Rate (Percentage of billable hours)
- Tickets Closed per Technician per Day
- First Response Time (Target under 30 minutes for urgent issues)
- First Contact Resolution Rate
- Number of Repeat Incidents
- SLA Compliance Percentage
- Time to Patch Critical Vulnerabilities (Security KPI)
- Number of Security Incidents Detected and Resolved
Customer Satisfaction:
- Customer Satisfaction Score (CSAT)
- Net Promoter Score (NPS)
Employee Productivity and Incentives:
- Task Completion Rates (Tickets and Projects)
- Time Spent on Billable vs. Non-billable Activities
- Employee Engagement Survey Scores
- Bonus Program Metrics based on KPI achievement and behavioral factors
- Recognition and Gamification Participation Rates
The Impact
Outcomes and Benefits
With this structured KPI framework and incentive program, the MSP enhanced workplace visibility despite its virtual nature, boosted technician productivity, and reduced overtime and burnout risks. The focus on customer satisfaction KPIs led to elevated client trust and retention. Employee recognition and ownership fostered engagement, improving morale and collaboration even with limited physical interaction. The firm was able to better forecast revenue trends and operational bottlenecks, sustaining scalable growth in a competitive managed services market.
Sales increased by 7%, client retention increased 4%, Costs remained static and EBITDA grew by 6% in the first year.
Exposing and Addressing Fraud in a SMB B2C Company
Background
In this SMB B2C company, the CEO struggled to get timely financial records and had no meaningful insight into the business. His primary focus was on protecting EBITDA, guided by advice to “ignore small variances” and only investigate large ones, with all variances calculated as a percentage of sales.
Their Challenges
As an experienced CFO, I immediately saw red flags in the income statement. A deeper conversation with management revealed a troubling history: three years earlier, an office manager had been caught stealing, followed by another incident the next year. Leadership believed those problems were behind them. However, another major red flag appeared—non-financial management was driving core financial systems and processes, using multiple unrelated apps to capture bills, with no central oversight.
Further investigation uncovered systemic failure in internal controls. The current accounting staff had unrestricted access to all systems and processes. This person was:
- Paying themselves directly without authorization.
- Recording personal payments on the balance sheet as “prepayments.”
- Allocating checks into the previous year to avoid scrutiny.
- Manipulating expense allocations to ensure reported variances stayed within the CEO’s chosen tolerance.
Why Management Didn’t Detect the Fraud
- They never reviewed the balance sheet.
- They did not understand how to read or interpret the balance sheet.
- They received inadequate advice that ignored the importance of small irregularities.
- Emotional attachment to staff, combined with misplaced trust, led to a lack of vigilance and absent internal controls.
The Solution
CFO-led Interventions
I worked closely with management to address both the technical and cultural failures:
- Upgraded and integrated ERP and accounting systems into one cohesive platform.
- Redesigned processes for approving and recording expenditures.
- Implemented segregation of duties and access controls across all financial systems.
- Created reporting mechanisms that produced clear, timely financial data in formats the CEO could easily understand.
- Conducted training for leadership on interpreting both income statements and balance sheets.
- Established internal control policies for future protection against fraud.
Results
Shifting the CEO’s Perspective
A key takeaway was changing the mindset from “protect your EBITDA” to “grow your EBITDA.”
Protecting EBITDA often tempts managers to manipulate timing or categorization of expenses, masking operational inefficiencies and risks. By focusing on growth, leaders become more open to transparent reporting, honest variance analysis, and addressing systemic weaknesses, rather than hiding them.
This intervention not only exposed fraud and eliminated control failures but also transformed the company’s financial management culture from reactive protection to proactive growth.
