Case study: Manufacturer accounting turnaround

Like many manufacturing businesses, the client relied on timely and accurate financial information. And as a firm with extensive industry expertise, our advisors know that manufacturing and distribution businesses face pressure to improve margins, manage cash flow, and keep operations running efficiently. After losing key team members, the company fell behind on monthly close procedures. The new private equity owners brought in a large CPA firm, which was not local to the client and was unable to provide the hands-on support or GAAP basis financial statements the company needed.

This created a serious problem because, without accurate financial statements, company leadership didn’t have a clear view of the company’s financial position. To make informed decisions that addressed the problems, they needed reliable numbers.

Our Mowery & Schoenfeld team stepped in as an advisor that could quickly assess the situation, work with leadership, and offer practical and effective solutions. The company needed an accounting partner that could be hands-on and start work right away to right the ship. 

Our client advisory services team performed an assessment and outlined opportunities for improvement. Over the next few weeks, our team helped the client get back on track by implementing GAAP basis reporting, completing several months of catch-up accounting, and putting together detailed financial statements. As the reporting became clearer, leadership was able to see the company’s true financial picture.

With our assistance, the client could make the data-driven decisions needed to facilitate their recovery. For example, the new reports armed our client with the crucial data necessary to renegotiate their largest customer contract, getting the major price increases they needed to stay afloat.

Following the turnaround engagement, our team stayed on as accounting advisors. With stronger reporting and more informed decision-making, the company was able to recoup its losses and eventually achieve USD 1 million in monthly positive cash flow.

This turnaround client’s story is a strong reminder that businesses in transition often need more than just technical accounting support. Having the right accounting and advisory partner in place to provide an objective, experienced perspective makes a meaningful difference.

Download the case study here. 

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Matt Schoenholtz is a partner and client advisory services leader. In his role as client accounting services partner, Matt serves as an outsourced financial officer and advisor for Mowery & Schoenfeld's clients; he also leads the firm's turnaround accounting practice. He specialises in consulting with businesses on their daily accounting, as well as overall financial planning and health.