After going public through an IPO in 2021, a rapidly growing retail company faced a significant increase in financial reporting and compliance requirements. With a lean accounting department, the company lacked the internal bandwidth to meet these rigorous public company demands. On-Demand by RGP filled the gap by providing experienced consultants with deep expertise in the finance, accounting, and corporate processes required for public companies.
As a newly public company, our client needed to strengthen internal controls, address material weaknesses, and implement standardized accounting processes. They also needed to expand their internal finance and accounting capabilities and hire new staff members to handle these new responsibilities.
01.
Experienced Support Helps Keeps Transition on Track
Our lead consultant brought years of first-hand experience working in corporate accounting for public companies, including one that transitioned from private to public entity during her tenure. So she was familiar with the cadence and expectations of a smaller public company and could guide our clients on the changes that would be required.
“The private environment is much more relaxed because deadlines are set internally. But as a public company, you’re really adhering to outside deadlines as well—committing to quarterly audit activities in addition to an annual audit,” she says. “Private companies don’t need the same level of documentation or segregation of duties that you anticipate with a public company.
On-Demand consultants were able to take on projects the internal team did not have the bandwidth to handle and then run with them—freeing our clients to focus on business-as-usual and other tasks, such as maintaining journal entries, monthly close activities, and public filings.
02.
Resolution of Material Weaknesses
The most urgent need was to correct the material weaknesses that had been flagged in its public filings, including segregation of duties, journal entry policies, and reconciliation procedures. Our team has worked closely with the company’s leadership to address these material weaknesses and to support the staff with specific needs.
Through our guidance, the client addressed several material weaknesses identified in their public filings, including segregation of duties, account reconciliations, and journal entry approvals.
For example, we helped reassign responsibilities to ensure that no single individual could both propose and approve transactions, a critical requirement for public companies. This meant hiring additional staff and developing new policies for reviews. We also introduced control measures, such as tiered approval levels for journal entries based on transaction size, enhancing oversight and minimizing risk.
03.
Standardized Accounting Processes & Efficiency
In addition to ongoing efforts to correct weaknesses and resolve existing issues, On-Demand by RGP worked collaboratively with our client’s team to develop standardized, documented processes for key accounting activities, helping to put the foundation in place for the company’s future as a public company:
- Developed standardized templates, formats, and policies for journal entries and account reconciliations to ensure compliance with public company standards.
- Documented standard operating procedures (SOPs) and policies for key processes, journal entries, and other financial transactions to help maintain clear and accurate records.
- Identified process inefficiencies and introduced automation solutions, such as using Excel to automate manual tasks.
By automating manual tasks and introducing new systems for process management, our consultants helped the company streamline operations and improve efficiency, reducing the time spent on reconciliations and other accounting activities.
04.
Reconciliation & Root Cause Analysis
Our consultants also conducted thorough reviews of account reconciliations and identified discrepancies, providing in-depth analysis to uncover root causes and collaborating with the company’s IT and accounting teams to resolve issues. We helped to bring reconciliations up to date and to ensure that ongoing reconciliations adhered to best practices.
05.
Ongoing Training & Resource Planning
Working alongside our client’s accounting staff, we provided training and guidance on best practices for accounting, reporting, and compliance. The goal was not only to address current gaps but also to empower the client’s team to manage these responsibilities independently going forward.
This gave our client the breathing room to make informed decisions about expanding their internal team. Since going public, the company has added multiple new positions in accounting and financial reporting, including specialized roles such as lease accountants and a director of inventory accounting.
06.
Strategic Value & Long-Term Impact
On-Demand not only provided hands-on support but also played a key role in process improvement and knowledge transfer, ensuring that our client’s accounting and finance teams are well-prepared to manage ongoing public company obligations.
Our partnership allowed the company to strengthen their internal controls, improve financial reporting accuracy, and build a robust, scalable accounting infrastructure. Today, they continue to grow their internal staff, implementing many of the recommendations and processes we helped establish, setting the stage for continued success as a public company.
