Process Improvement & Financial Reporting for a Web-Hosting Company
Our client, a global web hosting and cloud computing company with annual revenues in excess of $350 million, has experienced a period of rapid growth over the past few years. This growth resulted in the need for a more sophisticated accounting group and improved accounting processes and procedures. The accounting department had experienced a high volume of employee turnover and the systems in place were not sufficient for the size to which our client had grown.
Due to the complexity of the issues and the accounting groups’ responsibility for daily operations, our client engaged Riveron to assist in the planning and execution of the required changes.
After Riveron was called, we had a team of consultants at the client site within a couple of days. Due to rapid growth and high level of employee turnover, there was substantial difficulty in gaining historical knowledge of systems and procedures. After understanding the policies and identifying weaknesses, we developed improved reporting and reconciliation procedures to be performed during each period-end close. A Riveron consultant performed the role of interim AP Manager to improve the clients AP process for recording invoices and approving/processing payments. Revenue reporting did not provide appropriate information for management to make decisions. We worked closely with IT in efforts to revamp the revenue reporting process to meet managements’ needs. The client has significant fixed assets that were not tracked at a detailed level or by entity. We implemented a fixed asset subledger by asset that broke a single, high level, schedule out between six entities in detail. Riveron consultants implemented lease accounting software to track capital and operating leases at the detail level. To assist with the year end audit, we prepared the financial statements, including footnotes, and reviewed authoritative guidance to ensure all necessary disclosures were included.
Benefit to our Client
The experience that Riveron resources provided allowed the client personnel to continue performing their day-to-day responsibilities while still providing important management oversight for each project. After months of working alongside client personnel, each project was transitioned successfully to full time client employees.