What happens when you combine an overworked CFO / office manager, a lack of assigned administrative responsibilities, and an old and complex equity distribution spreadsheet? Important partner payments become chaotic, rushed and often riddled with errors.
A mid-sized law firm with 15 partners and 30 attorneys suffered from a case of “who was doing what.” Back-office duties were loose, with continual questions as to who was handling which administrative responsibilities.
There were no written instructions on how to process those equity distributions. Moreover, a CFO — who is responsible for strategic guidance of the firm’s financial management — shouldn’t be doing so many other administrative duties.
CFO Simplified evaluated the firm’s operations and executed the following changes:
Our analysis led to a new organizational plan that included hiring a Controller instead of their existing full-time CFO. The new controller had responsibility for day-to-day processing. This allowed us to establish and tighten internal controls and improve the closing process.
Working as the firm’s fractional CFO assured that the equity distributions were done on a timely basis, and payments to the equity partners were delivered within two weeks of the month end close for the first time.
Changing the organization of the finance and administrative area in the company reduced operating expenses, and improved operational efficiency. A regular reporting package was created for the executive committee and equity partners that laid out profitability, reporting exceptions and monthly trend analysis and KPIs.
Perhaps not quite as significant as Harrison Ford’s character’s choice in Indiana Jones and the Last Crusade, choosing a name
Our people are unique CFOs. They are all operationally
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