5 ways Crowe supports companies with accounting needs

Chaz Simpson

5 ways Crowe supports 5 companies with accounting needs

With our flexibility and customized approach, we help meet deadlines, improve processes, and offer senior-level expertise – see how in these case studies.

Whether you’re experiencing staff shortages with audit deadlines approaching or have specific accounting and financial reporting needs following an acquisition or other strategic event, Crowe offers the scalability and knowledge to help you meet your accounting needs.

These five case studies show how Crowe stepped in to meet specific accounting needs and, on occasion, uncovered other areas of concern. Read on to see how companies collaborate with Crowe.

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Fixed assets and corporate accounting

Client challenges

A global financial services company specializing in institutional equity, investment banking, and real estate needed help enhancing its fixed asset department’s processes. Over the previous few years, the client experienced high turnover, which uncovered issues like inadequate procedural documentation and poor management oversight into day-to-day fixed asset operations. These challenges resulted in inaccurate reporting, misstatements in financials, and concern voiced by external auditors.

How our team helped

Crowe stepped in as the outsourced fixed asset department, reporting directly to the vice president of corporate accounting and filling two positions for 10 months: senior fixed asset accountant and fixed asset manager.

While the initial scope focused on reviewing past-due audit questions and providing audit support, as needed, the project quickly expanded to analyze the construction-in-progress process. When the Crowe team discovered outdated capitalization rules were used, the company requested a formal review of its standard purchasing-to-capitalization process to make sure uncapitalized assets were captured. The Crowe team also updated policies and procedures for all controls, standardized the periodic rollforward reporting to streamline the process, and cut hours to completion down by 80%.

After implementing these enhancements, a Crowe employee helped fill a short-term gap caused by employee turnover and assisted with month-end close in fixed assets and accounting. Before the Crowe team finished the engagement, it helped train the company’s new hire.

Accounts receivable and accounts payable

Client challenges

A national media company was recently acquired and needed assistance with audit requests relating to financial analysis during the acquisition period.

How our team helped

Crowe first performed comprehensive accounts receivable and accounts payable analyses. Specifically, Crowe performed 13-month lookbacks of each of these areas and prepared a monthly trend analysis for each aging bucket at the company. Crowe recommended the company implement a required control for a monthly trend analysis to improve reporting and focus on key accounts in these areas.

Month-end close process and year-end audit assistance

Client challenges

A publicly traded financial services company needed an accounting staff with various experience levels as it was experiencing a period of high turnover and was anxious about meeting month-end close deadlines. By outsourcing the accounting staff, the company gained the benefit of time to fill open positions with the most qualified candidates rather than fill vacant roles as quickly as possible. During this transition, the client also requested the Crowe team review its processes and recommend a shorter month-end close schedule.

How our team helped

Crowe provided the client with three individuals to serve within the accounting department. Crowe seamlessly integrated with the accounting team and performed the relevant functions associated with the assumed roles at the client. The Crowe team managed the month-end close process and held all team members accountable to those month-end close deadlines. In addition, the team assisted the communication and requests from their independent auditor for the company’s year-end audit.

The team attended relevant meetings, prepared and reviewed journal entries and reconciliations (with the client ultimately approving all work product and taking responsibility for that work), and worked with the client’s technical accounting and other cross-functional teams to determine the appropriate accounting entries for new transactions.

Additionally, Crowe recommended process improvements for the month-end close to save time and help the client achieve its goal of shortening the schedule. Finally, the Crowe team members provided detailed walkthroughs and training for the individuals who were hired by the client to take over those roles full time.

Multidepartment accounting and finance demands

Client challenges

A global financial services company sought a specialized firm to fill key employee gaps on its corporate accounting, financial reporting, and operational teams. The company experienced a high level of employee turnover and identified numerous accounting and operational issues that needed to be addressed. The company turned to Crowe because of the firm’s deep expertise and experience in the financial services industry, helping clients mature their finance and accounting functions.

How our team helped

Crowe worked with the client to help augment immediate staffing needs on the financial reporting, special purpose acquisition company reporting, corporate accounting, real estate, and compensation teams. This allowed the client to effectively meet ongoing financial and regulatory reporting deadlines for both internal and external stakeholders.

Next, the Crowe team helped review existing policies and procedures for known problem areas and helped the client implement more efficient and mature processes for the accounting and finance functions. Throughout the yearlong engagement, the Crowe team provided continual support and helped the client successfully meet all its reporting and audit deadlines while also helping the client correct operational issues and implement more efficient policies and procedures. The company continues to rely on the knowledgeable Crowe team to help meet ongoing accounting and finance needs.

Intercompany analytics and audit coordination

Client challenges

A global telecommunications company initially explored outsourcing staff to help reconcile intercompany accounts receivable and accounts payable across multiple entities. In addition, the company requested staff augmentation of an audit coordinator who could provide audit support for the parent company’s external auditor, as well as for the company’s foreign subsidiaries’ statutory auditors, as the current employee lacked specific experience.

How our team helped

Crowe performed the intercompany account reconciliation, resulting in no audit adjustments, and created a template for the client to replicate the reconciliation going forward. In addition, for three consecutive annual audit periods for three entities, Crowe performed audit coordination tasks following an external audit by another company. For the parent company audit, this included coordinating and leading status calls, gathering and reviewing support for appropriateness and accuracy prior to submitting to the company’s external auditors, and helping to resolve auditors’ follow-up inquiries. For the statutory audits, Crowe also drafted financial statements and financial footnotes, which allowed the client to successfully meet all reporting and audit deadlines.

How Crowe can support your company

It often starts with a problem: past-due audit questions, improper capitalization procedures, or operational issues. Crowe accounting and finance specialists are knowledgeable and can quickly step in, help identify issues, and help address accounting needs.

Discover all the ways we can augment your staff or outsource specific responsibilities.

Learn how we can help

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The information in this document is not – and is not intended to be – audit, tax, accounting, advisory, risk, performance, consulting, business, financial, investment, legal, or other professional advice. Some firm services may not be available to attest clients. The information is general in nature, based on existing authorities, and is subject to change. The information is not a substitute for professional advice or services, and you should consult a qualified professional adviser before taking any action based on the information. Crowe is not responsible for any loss incurred by any person who relies on the information discussed in this document. © 2023 Crowe LLP.

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