Executing an Accounting Policy Change for a Healthcare Practice
The Situation
A physician-based healthcare practice, recently acquired by a private equity firm, was faced with a series of challenges, including: a new reporting structure, new subsidiaries, and the need to convert their cash basis accounting books to accrual (in order to complete their first consolidated audit and meet bank reporting deadlines). With a tight timeline and increased demands, the Accordion team was engaged to provide interim leadership, assist in rebuilding the chart of accounts and system reporting, and complete purchase accounting to develop consolidated financial statements for the audit.
Services
Project Management Oversight
Financial Statement Preparation & Analysis
ERP/Financial Systems Assessment
The Execution
- Interim Leadership: With the rapid pace of organizational and accounting policy changes, the Company lacked key skillsets and experience in the Finance Function. The remaining team also lacked a strong leader, so we stepped in as Interim Finance Director to lead the Finance Function, assess the existing team, and develop a future state view of the organizational structure – including key technical gaps.
- Accounting System Assistance: With increases in complexity and volume of the business, the Company needed to adapt their accounting system. We identified new legal entities to create, assisted in structuring the new reporting hierarchy layout, analyzed their data set to create a new robust chart of accounts, and assisted in the development of a system to generate internal and external reports.
- Financial Statement Preparation: The accounting department was incapable of developing an audit-ready accrual basis set of financial statements. After completing purchase accounting entries and assisting in the transition from Cash to Accrual, our team utilized the new chart of accounts and system generated reports to produce a full set of GAAP compliant Financial Statements for the audit.
- Audit Assistance: The Company had never completed a full GAAP audit and lacked the experience and leadership necessary to successfully drive and deliver requests to the auditors. Our team led the audit by maintaining PBC requests, fielding questions and responses, supplying additional schedules, and fully preparing the draft set of Financial Statements – including footnotes.
The Results
Our team provided overall leadership – helping to manage a cash to accrual conversion and first GAAP audit. With our support, the Company successfully issued their first set of audited Consolidated Financial Statements, within their deadline, generated from their system.