Turnaround Consulting - What We Do
There are times when a business stops being successful. Many times a business finds itself on a steep downward slide. When management is unable to make the corrections on its own, outside consulting services are needed.
This is what we do:
- We have a discussion with management to obtain an overview of the general nature of the problems. We discuss what’s still working, and what in management’s view is not working.
- We have an in-depth interview with management, and possibly others connected with the business in an attempt to gain a full understanding of the problems.
- We make a detailed analysis of the financial statements of the company for the current year, and the last two years, to determine trends and problem areas. (The financial statements tell a rather detailed story of the recent history of the business, and why the business is no longer successful.)
- As the financial statements are analyzed, we ask many questions about the various phases of the business, using the statements as a guide. For example: In the sales salaries and marketing expense areas, we may ask a dozen questions, or more, about what and how the company is doing in that area. Although we are not marketing consultants, some of the questions are intended to plant seeds, other questions are intended to determine whether or not the company may have a need for a marketing consultant.
- All items on the financial statements are addressed; nothing is off-limits or sacred.
- We then begin to focus on the problem areas – the largest items receive priority attention. However, we identify all problem areas that need to be corrected.
- We create a goal setting session to be sure we know where we want to be at the end of our assignment. Defining goals is extremely important.
- We create a plan to organize and direct the manner in which we will achieve our goals. As part of the plan we may prepare financial projections.
- We begin to implement the plan.
- After the largest items are addressed we move down the line to address all other areas that have been identified as needing correction.
- We stay with the client and the program until it is felt that we have accomplished everything we want for this assignment.
- If other, more serious problems are discovered, such as “occupational fraud,” we will bring our initial findings to the attention of management. It is management’s decision to direct us with respect to additional investigative accounting procedures, and possibly to a forensic accounting report. For additional information go to: www.cashflowconsulting.biz
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