Case study: How a Fractional CFO Simplified Challenges for an Oil Services Company

The Situation

A small, family-owned company in Texas was struggling to get accurate financial information from its Controller. Cash flow prevented them from bringing on a full-time CFO, but they were also unsure how to structure their finance department. Management didn’t understand enough about finance and accounting for pinpointing any issues, but it was becoming more apparent that the Controller was untrained. Internal controls were not adequately established, and there was ample opportunity for a mal actor.

Operationally, the company also needed counsel from an experienced industry professional. The company had reached a growth threshold that presented unforeseen challenges to operations, raising more questions about staff needs throughout the business.

The Solution

The company engaged a McCracken Fractional CFO to help assess the needs of the organization in finance and operations. The Fractional CFO would help get the finance function back on track and establish proper internal controls and reporting procedures.

Outcome

Within three weeks, owners and management regained clarity in the company’s financials. The Controller ended up leaving the company, but with fractional guidance and some training, the accounting staff can fully manage the business’s accounting operations. 

The Fractional CFO facilitated the involvement of an industry specialist who identified significant tax breaks underutilized by the company. These breaks resulted in an influx of $800k cash to the business.

The CFO also had the industry experience to counsel the owners on their operational challenges. They were able to resolve their concerns about personnel through a minor restructuring, opening a new role. 

The Benefits

• The Fractional CFO was a very efficient solution, saving the company the time and resources needed to hire additional talent.
• Sound accounting policies, procedures, and internal controls were established to provide a sturdy framework for the accounting function.
• Confidence in the organization and clarity of its performance were regained.

If you would like to learn more, please do not hesitate to reach out for a free consultation. We would love to explore with you how you could simplify your challenges and establish the proper internal controls needed for your finance function to thrive.