Medical Devices

Accounting & Financial Reporting

Situation and Challenge

A medical device company was growing at double digit rates and could see a clear path for continued expansion—either through organic growth or an acquisition. The company anticipated that their success would soon attract outside investors, and they wanted to be prepared for that eventuality.

Management needed to be sure that their books were in good order for both on-going management of the company as well as bank/investor presentations.

They asked us to ensure proper GAAP accounting, document accounting procedures, establish a monthly financial reporting package and develop key performance indicators (KPIs).

Solution

We identified adjustments needed for GAAP accounting, restated prior years’ financial statements and documented procedures for future compliance. We remapped expenses and instituted policies for consistent categorization.

We revised the Chart of Accounts to facilitate product line gross margins and instituted a perpetual inventory accounting system.

We created a comprehensive monthly reporting package and dashboard which not only included overall year-over-year and month-over-month performance and financial ratios, but also profitability by product line and per transaction as well as customer trends.

Results

The reports identified areas of the business needing further attention, including inventory, supplier and customer management. The management team was deployed to address the identified issues.