Achieve a 66% Faster Close & 90% Data Integrity Improvement with Enhanced Financial Processes Like Leading Home Appliance Manufacturer
Quantifiable Outcome Summary
66% Time
Faster Close
90%
Improved Data Integrity
100%
Accurate Reporting
Role Filled
Interim Assistant Controller
Project Detail
66% Faster Close
Reduced month-end close duration from over 30 business days to just under 10 business days
90% Improved Data Accuracy
Established enhanced customer and vendor revenue and expense allocation processes, ensuring consistent and more reliable reporting
100% Accurate Reporting
Aligned revenues and expenses using accrual methods based on contractual rates to ensure total reporting accuracy
About The Client
A premier designer and manufacturer of compact home appliances distributed through major national retailers including Fortune 500 companies. The company also operates a direct-to-consumer e-commerce platform, offering innovative solutions to meet diverse customer needs.
Industry: Compact Home Appliances
Key Benefits & Lessons Learned
Operational Visibility
Custom built reporting tools provided insights into customer performance for the first time, enabling data-driven decision-making and contract optimization
Process Efficiency
Automation and ERP optimization significantly reduced manual workloads, improving reporting speed and accuracy
Stakeholder Confidence
Delivering accurate and timely financial packages strengthened trust with the board of directors and lenders
Focus on Scalability
The new processes positioned the company for future growth without increasing dependency on external resources
Solutions
Solution Outline:
The project implemented several key process improvements:
- Segregation of duties within AP team: Assessed strengths of team members and designated month-end close tasks to more skilled accountants to improve efficiency, accuracy, and focus. Additionally, designated specific staff to continue processing invoices during close to reduce processing time and vendor issues.
- ME close Accrual Checklist: Created a comprehensive month-end close accrual/JE checklist for the AP team to provide a record of recurring and non-recurring JEs, ensuring all necessary tasks were tracked each month rather than relying on memory.
- Team Task Allocation: Emphasized that team members should ask management first when assistance was needed with accruals, reducing distractions for accountants focusing on their assigned tasks.
Client Challenges
Inefficient Processes from Turnover
Significant staff turnover left many processes outdated or incomplete, leading to bottlenecks and operational breakdowns
Lack of Customer Performance Visibility
The absence of detailed reporting prevented management from tracking revenue, discounts, returns, and AR allowances, leaving sales efforts and strategic decisions unsupported by data
Prolonged Close Cycles
With no standardized workflows, the month-end close process often extended beyond 30 business days, delaying critical financial outcomes & reporting
Key Project Elements & Deliverables
Systems & Tools Used
- NetSuite ERP: Rebuilt to enable custom reporting and data integration
- Bill.com: Used for AP processing and improving workflow automation
Timeline
Project Duration: 2 months
Key Deliverables
Custom "By Customer P&L" Reports
Developed using NetSuite's reporting capabilities, enabling granular visibility into customer performance metrics
Revenue & Expense Allocation
Established processes to accurately record revenues and expenses by customer and vendor, improving data accuracy by 90%
Workflow Automation
Optimized ERP usage and automated repetitive tasks to streamline the month-end close process
Comprehensive Financial Packages
Produced detailed monthly financial statements, providing management and stakeholders with reliable, actionable insights
Milestones Achieved
- Delivered "By Customer P&L" reports within the first 5 days
- Streamlined month-end processes and delivered accurate financial packages in under 2 months
Project Objectives & Business Needs
Key Project Objectives
- Establish accurate processes for revenue and expense allocation
- Reduce the month-end close timeline
- Enable data-driven decisions through actionable reporting
Business Needs
- Implement custom reporting to provide visibility into customer performance
- Standardize accrual methods to ensure revenue and expense alignment
- Modernize financial workflows to support growth and enhance accuracy
Outcome Details
Solution Outline
8020 Consulting provided an experienced interim Assistant Controller to lead the project. The approach included:
- Custom Reporting Development: Created "By Customer P&L" reports using NetSuite's reporting capabilities, providing actionable insights into customer performance
- Revenue and Expense Allocation Processes: Established standardized methods to align revenues and expenses by customer and vendor, improving data accuracy by 90%
- Workflow Automation: Optimized NetSuite ERP and Bill.com usage to automate repetitive month-end close tasks, reducing the close duration by 66%
- Financial Package Delivery: Developed comprehensive and accurate monthly financial packages, satisfying the board and lenders
Project Summary
The project delivered substantial efficiency gains, enhanced financial reporting accuracy, and improved stakeholder confidence. These outcomes enabled the company to streamline operations, meet reporting deadlines, and establish a solid foundation for future growth
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