SME Service Company

Accounting errors and poor book-keeping problems.

Problem:
A CFO began internal investigations into cashflow difficulties, but was not able to devote full attention to this investigation and see through to conclusion.

The CEO and CFO decided the problem required external expertise to resolve the cash flow crisis.

Solution:
A Chartered Accountants Ireland Interim Managers’ expert took on the role full-time for three to six months.

Action:
An initial meeting with the CFO and CEO outlined a plan of action.

After a few months of investigation, two significant discoveries were made:
1. The business had incurred significant losses. The losses resulted from accounting errors and poor bookkeeping. The results were presented to the Board of Directors as a “before” and “after” P&L situation.

2. By analysing contracts, the company incurred losses on several larger clients, due to poorly executed contracts.

The finding of the financial investigations came as unpleasant surprise and shock to the Board of Directors and the company’s shareholders.

Results:
Unfortunately, the magnitude of the losses was extreme and the situation serious; the shareholders took the very tough decision to put the company into liquidation.

The appointed liquidator decided to retain the expertise of the Chartered Accountants Ireland Interim Managers’ specialist for a further two months to assist with the liquidation process.