Overview
The client — the world’s leading home care network for older adults with the most advanced care platform and technology — engaged Kranz after running into complex accounting and audit readiness requirements.
Business Challenge
When the client approached Kranz, they were experiencing rapid growth and increased operational demands, but did not have an infrastructure in place to support the level of scale happening. As a result, the client was not able to make informed and timely financial decisions due to inefficient financial and accounting processes.
Approach
Kranz consultants began by engaging the client’s engineering team to automate reports for revenue, which enabled accurate and timely revenue reporting and gross margin analysis.
As the gross margin reporting was dependent on accurate payroll processing, the Kranz team also implemented payroll process improvements and facilitated a seamless shift of corporate payroll from bi-weekly to semi-monthly.
In addition, Kranz instituted a robust, 10-day closing schedule and kept all stakeholders informed of progress.
After streamlining processes and catching up with account backlogs, the Kranz team began to set up audit-ready policies and processes and worked directly with the audit firm to issue audited financials with no adjustments.
Results
After engaging Kranz, the client obtained streamlined processes for finance and accounting, resulting in the delivery of accurate and timely reports. Because the output was audit-ready and required no adjustments, the client was also able to boost their fundraising efforts.
Once the Kranz team revamped the client’s revenue and gross margin analysis processes, the client had more visibility to real-time information, which enabled them to make faster and more reliable decisions regarding new geographic expansions.
Before Kranz
- Fragmented invoicing and Accounts Receivable process with a couple of months of billing backlog
- Revenue recognition not aligned to correct metrics
- Not audit ready
After Kranz
- Improved processes for accounting, gross margin analysis, timely month-end close
- Revamped revenue reporting and finalizing revenue by business day 3 and gross margin reporting by business day 5 monthly
- Successful audits with zero adjustments by a Big 4 Audit firm