PREFERRED CFO

The Confidence of Knowing™

ENERGY MANAGEMENT CORPORATION

Industry:  Electrical Equipment Manufacturing & Installation

Results

  • Reduced year-end inventory write-offs approximately 80%
  • Improved accounting reporting to consolidate all four physical locations
  • 80% reduction in back-ordered sales orders

Preferred CFO Services

  • Process Improvement
  • Monthly Financial Reporting
  • ERP & Accounting System Development
  • Inventory Management

 

Preferred CFO provided a dynamic interim CFO solution that helped to streamline their sales order completion times, reduce inventory write-off, and fully utilize existing accounting staff. Our CFO was able to work closely with Energy Management Corporation’s internal IT department to improve their home-grown ERP system.

Process Improvement | Monthly Financial Reporting
ERP & Accounting System Development | Inventory Management

Situation

Energy Management Corporation had recently released its controller of 15 years prior to calling Preferred CFO. The company was behind on important government filings, internal company reporting, and on full ERP implementation, requiring immediate attention with year-end approaching.

Approach

  1. Immediately caught the company up on late filings, payables and receivables.
  2. Implemented best practice procedures around month-end closing processes and created templates and written procedures for existing accounting staff to implement.
  3. Worked intimately with internal IT staff to integrate and customize their home-grown ERP system to produce proper financial reporting and accurate financial information, as well as redo the inventory management process.
  4. Improved revenue generation and recognition processes, specifically around sales order completion.

Results

  • Reduced their year-end inventory write-off approximately 80% through the improved inventory management and valuation process.
  • Improved accounting reporting consolidates all four physical locations for better decision-making around improving performance of each location.
  • 80% reduction in back-ordered sales orders through the streamlined sales order completion process.
  • Existing accounting staff’s morale greatly improved as our interim CFO involved and empowered them in the problem solving and improvement process.
  • Our interim CFO helped them transition to hiring a full-time CFO.

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