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LEADING NATIONAL FOODSERVICE COMPANY CASE STUDY
Mitigating risk, guiding growth, and creating value with a ground-up ERM implementation
Introduction
When a major relocation left a consumer products company short on bandwidth and expertise, it knew it had to quickly shore up a few critical areas—SEC reporting and technical accounting being at the top of the list. That's when leadership called in the Embark cavalry.
Our Solutions
Between its Outsourcing & Team Continuity, Accounting & Reporting, Project & Change Management, and Office of the CFO solutions, Embark proved to be the ideal partner for the company.
Index
The “Big Wins”
1. Streamlined the reporting function & vastly improved accounting processes
2. Our AR work alone reduced the overall AR outstanding balance by 15%, & the over-60 days bucket by 60%
Our clients are happy. We’re happy. Everybody’s happy.
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We have had great experience with highly competent people in all projects we have engaged them for. In my experience the competence of the folks has been hard to replicate consistently with other companies.
Melanie Merritt, Corporate Controller of Helmerich & Payne, Inc.
The team is on top of it. They have been understanding and flexible with pricing and timing the engagement. The team, at all levels, is very competent in regards to the project. They stay in constant communication and engage us in a very personal yet professional manner.
Terry Nwosuocha, CPA - Senior Director of Financial Reporting & Accounting of SecurityScorecard
Amazing supportive attitude supported by a deep and broad knowledge and skill. Our requirement is always 1000% fulfilled by Embark team.
Bruce Suzuki, Lyseon North America Inc. (LNAI)
Embark sends the best people, so much so that it makes us think that these people grow on trees. We know they don't and we are grateful for all Embark does for our team.
Brandon Walls, CPA - Vice President, Controller of Ashford Hospitality Trust
Executive summary
Our foodservice client experienced a loss of key talent when it relocated its headquarters, originally engaging Embark to assist with its SEC reporting during this period. However, management soon realized the company lacked the bandwidth to address critical technical accounting areas as well. Embark shored up gaps in the accounting function and improved critical processes.
About the client
Our client is one of the largest foodservice supplier and distributor brands in the US. Publicly traded, it serves tens of thousands of customers across the hospitality, healthcare, and foodservice sectors, primarily through direct distribution.
Challenges & objectives
Embark’s foodservice client lost its Director of SEC Reporting when it relocated to another state. The new director faced a severe shortage of both time and staff to meet upcoming reporting deadlines. Elsewhere, management recognized that the company lacked sufficient experience and skills in other critical accounting and finance roles, actively seeking new talent in those areas. Our client identified several essential objectives to accomplish in the interim:- Continuity of essential roles across accounting & finance
- Quickly complete SEC reporting requirements to meet a short filing deadline
- Streamline the reporting function to meet future reporting requirements
- Evaluate its revenue recognition procedures according to ASC 606 guidance
- Catch-up with reconciliations and develop processes to streamline the process
How Embark helped
Embark played a critical role in helping guide the client’s accounting and reporting teams through an already challenging time due to the corporate relocation. While the engagement began with a focus on the company’s SEC reporting, management extended it to include areas involving technical accounting and operational issues.
Over the course of the engagement, we addressed several critical issues along with various ad hoc needs, including:
- Completed the client’s SEC reporting requirements, a two-week project, in a single week
- Implemented processes to ensure compliance with the revenue recognition guidance in ASC 606
- Streamlined AR collections through an AR tracking report after an acquisition caused a spike in its AR balance
- Created a process to ensure inventory and COGS was properly stated
- Transformed the cash flow workbook and statement from a hardcoded, manual process to a streamlined process with accompanying support
- Established an accruals process to provide an allowance for large customer credits in its AR balance
- Established a new template and processes to address control deficiencies stemming from a lack of segregation of duties in its collection of cash payments on deliveries
- Retraining current employees for the new processes, including cash reconciliations
- Helped transition incoming accounting talent into their new roles
Results: stable accounting & reporting
By the time we had completed the engagement, Embark’s client had a streamlined reporting function and vastly improved accounting processes. Our AR work alone reduced the overall AR outstanding balance by 15%, and the over-60 days bucket by 60%. With an influx of skilled talent as well as overhauled accounting and reporting procedures, our client now has a stable foundation to sustain growth well into the future.
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