US Subsidiary of Japanese Firm
Firm decides not to hire; opts for Outsourced CFO Services which improves decision making and reduces expenses.
Until the end of 2022, an employee from the parent company had provided the CFO-related services for the President of the American subsidiary. The President sought to have a resource dedicated to the American company’s financial needs and evaluated the options of hiring or ‘renting’ a CFO.
Knowing LCW CPAs founder, Tony Lopez, the president contacted LCW CPAs to discuss outsourced CFO services to meet the subsidiary’s needs. After initial discussions, a proposal was provided and LCW CPAs was hired to provide the CFO services that the subsidiary needed.
How LCW CPAs Helped
Two kickoff meetings launched the engagement in December 2022. The LCW CPAs team is comprised of Manager Kelly Gilbert and Associate Jordyn Boyce. They worked as a team to learn the accounting system and begin monthly account reconciliations, preparing the monthly financials and communicating and coordinating with the parent company in Japan.
The accounting team at the company includes accounts payable and accounts receivable accountants as well as inventory control. A business manager serves as a key liaison for LCW CPAs. Manager Kelly Gilbert reports to the President.
With accounts cleaned up and reconciled, the LCW CPAs team recently completed the first audit for FYE March 31, 2023 working closely with the firm’s west coast CPA firm.
As is common, there was initially a lot of work to be completed getting accounts reconciled and cleaned up to get into a steady monthly cadence. With the first audit now completed working with a CPA firm on the West Coast, the LCW CPAs team has accomplished a great deal in the initial months including streamlined communications working with the parent company.
With the heavy lifting completed, Jordyn owns the day-to-day financial reporting and reconciliation responsibilities, while Kelly completes reviews and offers analysis and insight for the President and the parent company.
Outsourced CFO services are provided at a flat monthly fee, enabling ease of budgeting and financial planning. The President now has the knowledge and expertise he desired to make informed decision for the American subsidiary. Costs are lower via the Outsourced CFO model vs. hiring as overhead and benefits costs are avoided and with two team members, the work is appropriated to the right team member to manage costs while being highly effective and efficient.