Our client is a startup developing smart on board units for cars. They has got a hungarian subsidiary 100% owned by the american parent company.
After the first bigger investment and industrial success our client and its team was ready to scale up the development and the production activity and they also had the money for it, but it wasn’t that simple. They faced several challenges on the field of financials around invoice handling and issuing, money transfer and CF questions and they also needed a reliable controlling system in order to meet the investors expectations to monitor the KPIs from month to month. They decided to find an experienced, professional team who can work out the main solutions in a relatively short term and effective way. That’s how we met each other, and started to work together in a six-months project. At the begining of the project we defined the main focus points, like making a comprehensive one-year financial plan, developing a consolidated controlling and reporting system, establishing a money transfer structure in order to finance the development cost of the hungarian entity by the investment had been injected into the american entity. Besides these focus points our client also needed an experienced professional, who can manage the day-to-day issues like making the new finance processes clear for the finance team and other employees. That’s why one of our experienced consultant started to work as an interim CFO at the company three days a week. During the field work our consultant made questionnaires in order to find out the nature of the main issues the team facing and helped to manage the daily operation on the field of finances like invoice handling, forecast day-to-day cashflow challenges, helping the new finance assistant to understand the basic tasks. After the first two months one of our senior consultant also joined to the project in order to help with documenting and implementing all the new rules and processes from new cost coding system to new travel policy and expense rules. After we made a comprehensive transfer-price risk-analysis we decided what kind of solutions would be the best for the client for inter-company money transfer, than we moved on with financial planning and process questionnaires. Evaluating these we started to define which field the client need help with the processes and we also figured out the type of tools we can use in order to implement these new solutions. After a discussion with the client we decided to extend the current use of the google business tools like forms and spreadsheets instead of implementing a brand new ERP system like SAP. We found that it would be a bit too much to handle in the same time, and we also knew that in order to implementing an ERP system these new tables and methods would be either way necessary for further steps in the future. That’s why we started to implement the new processes into google forms and spreadsheets. The main field we focused was order and incoming invoice approval and recording, outgoing invoicing and monitoring, travel expense recording and petty cash movement recording. We found that these processes cover the 90 percent of the crucial financial issues they faced in both entity. By implementing the new rules and frames for the processes we also made the basis for the new controlling and reporting system, after we made the basic master tables designed by documented rules it was far more easier to generate the new reporting structure to see how the numbers keep changing through the months.
After a successful test and implementation phase the internal financial processes became more effective and verifiable. Our client agreed that they are ready to take the next step by handing over the responsibility of maintaining the new structure to our newly hired CFO.