Transforming the Finance function of an US based IT services company from a record keeping function to a business partner enabling decision making

Background

An US based IT services Company have been in the business for two decades however the finance system was rudimentary in terms of people, process and system. There was no MIS systems in place which made it challenging to assess the performance of projects and take timely corrective actions. Also, its current team was caught up with day-to-day operations and CFO Bridge was roped in to address this gap.

Observations and Approach

Monthly P&L: Started monthly book closure and presenting monthly P&L and flag any areas which may require action, converted accounting from cash to accrual basis

Project Profitability - Built the process of computing Customer / Project Profitability  to identify root cause, drawing insights, monitoring low margin deals and action. 

Established the utilization metrics and various other measurement criteria and computing logic across roles/verticals/geography/levels 

Build a robust prototype to explain how the pricing needs to be done for Managed Services 

Started publishing fortnightly cashflows along with monitoring of Accounts Receivable to help in recovery of pending dues.

Built a Need Vs Availability model for assessing the requirement of resources across business based on project pipeline - this helps in taking actions on recruitment or let go of resources.

Created quarterly profitability forecasting based on actuals and estimates to ensure visibility of the numbers for entire year.

Competition benchmarking for insights and actions to be taken on key areas.