Mercator MedSystems CFO Steve Baker explains that the company has been around since December of 2000, but has been in the start-up phase all of its life. This poses some unique accounting challenges as the company generates the funding necessary to continue manufacturing and finding new uses for its innovative medical devices.
“I was to examine the cash forecasting process and help them put together a revised budget as well as clean up the accounting processes,” recalls Baker. During the process he discovered a number of issues: multiple vendor payments for the same invoice; no set process for monthly close routine; and financial reports that did not align.
Problem: Inadequate accounting function meant no single version of the truth, vendors being paid multiple times, and failure to close reporting periods in timely fashion.
Solution: Mercator MedSystems brought in Steve Baker as CFO who in turn contracted with Unalp CPA Group to provide outsourced accounting services and replaced QuickBooks with Sage Intacct.
Benefit: Two consecutive clean audits, accurate timely reporting, faster month-end closes.