A medical device company was growing at double digit rates and anticipated continued expansion. The company expected they would need bank or additional equity to fund continued growth or an acquisition. Management wanted to improve their financial control and reporting in order to secure additional investors as well as to improve on-going operating efficiency of the company.
Company leadership looked to E78 to ensure proper GAAP accounting and documentation procedures, establish a monthly financial reporting package, and develop key performance indicators (KPIs).
The E78 principal working with this client identified adjustments needed for GAAP accounting, restated prior years’ financial statements, and documented procedures for future compliance. The Chart of Accounts was revised, and a perpetual inventory accounting system was instituted. In addition, a comprehensive monthly reporting package and dashboard, including product line profitability as well as customer trends, was created.
- E78’s principal ensured that the company’s financial results were accurately stated and developed redefined reports that clearly identified areas of the business needing further attention, including inventory control and supplier and customer management
- The management team was deployed to address the identified issues and a CFO was subsequently hired
- The reporting package and procedures were successfully transitioned