The bank relationship was at risk. The financial systems had to catch up fast.
A privately held manufacturing company worked with Warren Whitney to improve financial reporting, stabilize cash flow, restructure banking arrangements, and strengthen internal accounting capacity.
Privately held manufacturing company
SERVICES WE PROVIDED
Financial management, accounting systems, cash flow modeling, banking transition, vendor payment strategy, reporting improvements, bookkeeper training
SUPPORT TYPE
Board development facilitation and governance planning
OUTCOME
The company stabilized its banking arrangements, brought payables current, improved reporting, and posted the most profitable year in its history in the second year.
THE STORY
Getting financial control back before the pressure became permanent.
A privately held manufacturing company had grown quickly, but its accounting systems and controls had not kept pace. The president was not receiving timely financial statements, information was being entered inaccurately into a new job cost database, and the company’s banking relationship was under serious strain.
The bank had issued strong warnings that its relationship with the company was at risk and ultimately demanded that the company move all banking relationships. Warren Whitney was engaged to help the company rebuild financial discipline, create clearer cash flow visibility, and stabilize the financial position of the business.
Warren Whitney worked with the bookkeeper to produce accurate financial information, created a cash flow model, helped management make operating decisions based on financial impact, restructured the banking arrangements, and trained the internal accounting team to take on more responsibility. Once the company stabilized, Warren Whitney moved into an advisory role until the president was confident in the internal accounting staff.
The Situation
The company had a strong growth story, but growth had exposed gaps in accounting, reporting, job costing, cash flow management, and banking. Without timely financial statements, the president did not have the information needed to make decisions with confidence. Without accurate job cost data, the company had limited visibility into project performance.
The banking pressure made the work urgent. The company needed reliable financial reporting, a cash flow plan, a vendor payment approach, and a path to a new banking relationship. It also needed its internal accounting staff to become stronger so the improvements could continue after Warren Whitney stepped back.
Key needs included:
• Generate accurate and timely financial statements
• Improve the reliability of accounting information
• Correct inaccurate data entry in the job cost database
• Create a cash flow model for management decision-making
• Build a vendor payment approach that could bring payables current
• Restructure banking arrangements after the bank demanded a change
• Monitor the company’s financial position during stabilization
• Train the bookkeeper to take on more accounting system responsibility
• Move from hands-on financial management to an advisory role once the company stabilized
Warren Whitney’s Role
Hands-on financial management when the company needed control, then advisory support when the team was ready.
Warren Whitney began by working directly with the company’s bookkeeper to create more accurate and timely financial information. Instead of receiving financial statements six weeks after the end of the quarter, the company moved toward a faster close process. Warren Whitney conducted a trial close near the last day of the month and generated complete financial statements by the fifth day of the following month.
Warren Whitney also created a cash flow model and worked with the management team to evaluate operating decisions based on their effect on the company’s financial position. That work included creating an approach for paying vendors that ultimately brought all payables back to current status.
When the bank required the company to move its banking relationships, Warren Whitney helped restructure the banking arrangements. The original bank was paid in full, and the company continued to stabilize. Warren Whitney then monitored the company’s financial position, improved reporting systems, and trained the bookkeeper to take on more responsibility before moving into an advisory role.
Our Value
Financial reporting, cash visibility, and banking stability when the business needed all three.
Before and After
From delayed financials and banking pressure to stronger reporting and the company’s most profitable year.
Before Warren Whitney
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Rapid growth without adequate accounting systems and controls
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Financial statements delayed by weeks
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Inaccurate data entry in a new job cost database
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Banking relationship at risk
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Payables pressure and cash flow concerns
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President lacked timely financial information
After Warren Whitney
- Complete financial statements by the fifth day of the following month
- More accurate accounting information and reporting systems
- Cash flow model used for operating decisions
- Vendor payment approach that brought payables current
- Banking arrangements successfully changed and stabilized
- Most profitable year in company history posted in the second year
Need Similar Support?
Are delayed financials, cash pressure, or banking concerns making decisions harder? Warren Whitney can help your team build clearer reporting, stabilize cash flow, and create the financial systems needed to run your organization.
Data Directions Inc.