Case Study 1

The Challenge:

The Canadian subsidiary of a global real estate company needed help transitioning its corporate controllership function to help support business expansion.


The Needs:

Controllership function fulfilled by someone with the following competencies / expertise:

 

Understanding of complex real estate transactions at the Canadian and at the Global level

Expertise in integrated systems for financial reporting

Ability to clearly understand management’s needs concerning the type of financial data required

Thorough knowledge of financial reporting requirements within a Sarbanes Oxley environment

Ability to perform accounting operations at optimum levels

Ability to develop metrics for measuring enterprise’s success through different views such as professionals’ performance, company-wide performance and at profit-center level

Complete overhaul of general ledger structure to accommodate new reporting requirements

The Controller position had to be transitioned with minimal disruption to operations spanning four Canadian Provinces and four different lines of business. The transition required immediate implementation of new financial processes including initiatives for measuring business’ performance.

Lopez & Co was retained to perform all controllership functions on an interim basis and to lead the restructure effort. Given Lopez & Company’s heavy experience in accounting operations, the accounting operations could be maintained with virtually no disruption while restructuring the financial reporting function. Lopez & Co was in a great position to begin the restructure process since Lopez & Co was dealing with all aspects of accounting and had the required skill-sets on staff to deliver a comprehensive solution.

The Solution:

Continue performing existing defined functions and simultaneously develop a plan for a restructure. Also while taking charge for performing all aspects of the financial reporting. Lopez & Company’s restructure plan addressed the required financial reporting requirements completely.

The on-going functions were performed with optimal efficiency. The proved efficiency lead to Lopez & Co becoming engaged for two years to carry on the financial reporting function.

Not replacing the controller resulted in over 45% savings in compensation costs that would have been otherwise incurred. In addition to the cost savings, using Lopez & Co resulted in radically improving the financial reporting process which lead to management having key financial performance information thus enabling the ability to make the best possible business decisions.

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