A public life sciences company needed insight into the high cost of their accounting function. The company’s executive leadership were disconnected from their accounting and finance and felt large scale changes may be necessary as the accounting function represented nearly one-third of the company’s headcount. Before Centri’s involvement, their accounting function lacked technical expertise and sophistication and provided limited forward-focused insight. The company found it necessary to bring in experts for financial reporting, technical accounting topics, and valuation services.
In response to these challenges, Centri performed an operational assessment to determine the root cause of the high-cost function relative to its limited productivity and capabilities. This operational assessment’s initial step included analyzing the company’s current processes, policies, and procedures. Centri then performed walkthroughs and interviews to understand systems, roles, and responsibilities and to inquire about problem areas identified from our review, such as the Financial Close and Reporting, Systems and Technology, and People and Processes. In alignment with these actions, Centri also determined process dependencies, inefficiencies, and silos.
Alongside this assessment, Centri documented our understanding of the current strengths and weaknesses of the client’s accounting function. Using the Centri Maturity Model, our team determined the areas for improvement and created recommendations based on industry best practices to optimize the client’s accounting function while reducing the overall cost.
Centri’s recommendations included implementing managed services for specific non-integral areas, allowing the company’s leadership to shift its focus away from accounting functions and back towards growing the business. Centri also recommended optimizing the Chart of Accounts and implementing a streamlined Period Close with fewer inefficiencies and redundancies. In an effort to improve the Financial Reporting Centri recommended ways the company could maximize their current systems and technology which improved the timeliness of their reporting. Additionally, Centri recommended a budget process with more forward-focused strategic insight and a more cost-effective use of technology, eliminating manual tasks where errors can easily be made.
Centri’s recommendations led to an anticipated 20% decrease in the annual cost of the accounting function as well as an improved timeliness of the month-end close and financial reporting. Centri’s recommendations included a managed service for the accounting function, which reduced the need for multiple outside consultants regarding technical accounting, financial reporting, and valuation. Additionally, based on the insights gained from an optimized accounting function, the company’s accounting and finance functions were optimized to be more forward-focused.
Ryan Starkes, CPA
Partner | Life Sciences Practice Leader
Ryan is a Partner and the Life Sciences Practice Leader at Centri. He has more than 25 years of public and private accounting experience. Throughout his career, Ryan has worked with public, privately held and private equity portfolio entities, ranging from pre-IPO entrepreneurial startups to large public multinational corporations aiding, collectively from an audit, consultative and internal perspective, while supporting a multitude of financial accounting advisory, financial reporting and internal control issues and transactions.
Garrett Buckless, CPA
Garrett is a Director in the Accounting Transformation Practice at Centri. He has over 10 years of experience serving as a trusted advisor to entrepreneurs, startups, investors, C-suite executives, and business owners guiding them through the complex financial landscape. His background in consulting, accounting, and tax offers a unique skill set that adds value to clients focused on accounting, financial management, and controls.
About Centri Business Consulting, LLC
Centri Business Consulting provides the highest quality advisory consulting services to its clients by being reliable and responsive to their needs. Centri provides companies with the expertise they need to meet their reporting demands. Centri specializes in financial reporting, internal controls, technical accounting research, valuation, mergers & acquisitions, and CFO and HR advisory services for companies of various sizes and industries. From complex technical accounting transactions to monthly financial reporting, our professionals can offer any organization the specialized expertise and multilayered skillsets to ensure the project is completed timely and accurately.
For more information, please visit www.CentriConsulting.com
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