Starting situation:
The company organizes tourism activities worldwide. Founded outside the EU, the business model was validated and a few years later the company was on its way from a start-up to a scale-up. Different services were rendered at different locations. The accounting was not up-to-date and hardly meaningful. The investors and founders were unable to place their trust in the finance department.
Task
The Interim CFO was to replace the incumbent to date, secure and largely automate the continuing processes and validate actual and target figures. A business plan was to restore investors’ trust, and the pending financing round needed to be prepared commercially. In tandem, various location matters needed to be clarified with consideration given to special tax aspects, and an efficient finance team needed to be built.
Implementation
A quick initial analysis confirmed the lacking stability of essential operational processes and reliability of the accounting figures. The results of the work performed by the finance department were inadequate. The core processes were quickly identified, and their function secured. The accounting to date was simultaneously discarded. The entire finance department was built up afresh in Germany. All finance functions were centralized. The services of external staff were also called on to work through the former issues. Due to the large number of placing transactions, associated with the retention of foreign funds, the accounting department focused intensively on automating the interface between upstream systems and accounting. Suitable payment service providers and fraud prevention needed to be integrated. Services by banks, tax consultants, auditors and lawyers were newly negotiated. Clarity was established in respect of the existing operating facilities and turnover tax. Controlling saw the implementation of a rolling 3-year plan in scenarios and short-term liquidity planning. At the same time, the necessary information was to be made available for financing rounds and board meetings. The Interim CFO essentially took on the following tasks: Establishing and managing the finance department (8 employees), organizational structuring, business planning; investor relations; negotiating with service provider and financial authorities; project definition and management; contracting and compliance.
Outcomes
The finance department could be quickly stabilized, and lacking trust established. The commercial basis for the further highly successful company development had been secured. A permanent CFO was jointly searched and responsibility for the department handed over.