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CASE STUDY: Providing Leadership and Financial Clarity After a CFO’s Termination

the situation

The CEO of a long-standing, highly respected community organization lost confidence in the performance of its CFO. Following the CFO’s termination, the CEO needed immediate financial leadership to maintain operations. Financial reporting and cash position concerns prompted the CEO to engage Fahrenheit Advisors to establish critical financial clarity keeping the organization running smoothly until a new CFO/Controller could be secured.

Our approach

Fahrenheit began by immediately placing a seasoned team member with more than 25 years of experience as the interim CFO/Controller to head the finance organization. During the consultant’s review and assessment of the financial situation, it became clear that serious issues existed including improper billing, cashflow concerns, lack of controls, and a large backlog of late monthly reporting. Fahrenheit compiled a comprehensive list of issues and a detailed plan for moving forward. Three core interim accounting consultants were added to the team to address the highest priority needs. Fahrenheit quickly understood the past CFO’s position was a hybrid CFO/Controller role.

Fahrenheit’s team approach accelerated the clean-up process and provided the CEO with confidence in uncertain times. The team initially focused on the urgent cash flow situation. This included building a 13-week cash flow forecasting model, correcting under-billing errors, streamlining the AR process, and instituting an improved and controlled AP process. Next, the team began to address the backlog of late monthly closes and reporting, which resulted in the organization getting caught up.

Once a new full-time CFO came onboard, Fahrenheit trained the CFO on the established processes and provided a seamless transition maintaining the financial integrity of the organization.

The results

  • Immediate interim CFO/Controller placement to lead day-to-day financial operations minimizing disruption to the organization
  • Leveraged additional Fahrenheit finance and accounting experts with urgency
  • Provided critical financial clarity empowering leadership to make sound business decisions
  • Established new processes and protocols based on industry best practices to ensure the integrity of future financial operations and reporting
  • Trained new CFO, assuring a smooth transition for the organization and an adherence to newly established processes and protocols