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  • Trevor Lattin

Case Study: Accounting backoffice transformation

Updated: Aug 13, 2021

Our team provided an accounting outsourcing solution to a 51 employee financial services firm with three offices across the United States. The solution provided a large improvement in quality in the accounting function, at a $98,000 financial savings in year 1.

The client is a roll up of three “mom and pop”-sized firms that had been merged together under an institutional private equity owner. Ongoing, the client was experiencing significant issues after the three firms were merged together into a $200M revenue business.


  • Bank reconciliations were not being performed timely; after a year, over $2M had accumulated in the unapplied cash account

  • The accounts payable and accounts receivable balances were not accurate, since cash had not been accounted for timely

  • A new accounting system, NetSuite, was implemented between the second and third acquisition. The accounting staff were not entering accounts payable and accounts receivable accurately into the system, making the accounting and financial statements unreliable; the process lacked baseline internal controls, policies, and procedures

  • The capital company ownership required that a full audit be performed by a regional CPA firm. The controller at the company could not prepare the documentation for the audit timely, since the balance sheet accounts were not accurate

  • The internal accounting staff of eight full time equivalents were located in two offices: one on the West Coast and one on the East Coast. Communication between the two offices was lacking

  • The capital company continued to task the CFO and controller with conducting due diligence on additional acquisitions

  • The client inherited in the acquisitions underqualified accounting staff of eight full time employees who were underqualified and underperforming. The annual expense of the eight accounting employees was $384,000

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