Rice Manufacturer Cuts Close Time By Nearly Half

Business Challenges

• An under-resourced finance team lacked the capacity and experience to manage critical accounting, reporting, forecasting, and compliance requirements.
• Core finance processes were not documented or consistently followed, creating gaps in reconciliations, monthly close, cash reporting, and financial reporting.
• The company needed stronger finance operations to support organic growth, acquisitions, and its requirements as a newly acquired PE-backed business.

Key Outcomes

• Cut the monthly close from 15 business days to 8 by establishing a structured close process, checklist, reporting cadence, and standard reconciliation practices.
• Completed the annual audit on time and met debt covenant requirements by providing the accounting, reporting, and audit support needed to address critical gaps.
• Built a more scalable finance function through standardized processes, documented procedures, improved systems use, trained staff, and a clearer organizational structure.

Project Overview

A PE-backed rice products manufacturer and distributor was preparing for continued growth through organic expansion and additional acquisitions. To support that growth, the company needed finance operations that could handle greater scale while providing timely and accurate reporting, stronger processes, and the financial information required by its stakeholders.

Bridgepoint Consulting was initially engaged to assist with purchase price allocation accounting and the company’s year-end audit following the acquisition. As our team began the work, we quickly identified broader gaps across accounting, reporting, forecasting, processes, systems, and staffing.

The existing finance team did not have the capacity or breadth of experience needed to address these issues while continuing to manage day-to-day responsibilities. The PE Firm and Management requested Bridgepoint to expand its role to address the immediate priorities while also helping establish the processes, staffing, and structure needed to support the company’s longer-term growth.

Business Challenge

The company was facing significant finance and accounting challenges at a critical point in its growth. Its finance team was not adequately staffed to complete the required work, while existing personnel did not have the capacity, experience, or range of skills needed to address the broader issues.

Several basic finance processes were either missing or not being performed consistently. Balance sheet reconciliations had not been completed, there was no month-end close checklist or established close process, and cash was not being recorded and reconciled consistently. Major accounting processes were also not documented or consistently followed.

The company also needed to improve its use of its existing ERP system, Sage 300. The system was not sufficiently understood, documented, or used, creating a need for discovery, documentation, training, and execution.

At the same time, the company had several immediate financial requirements. These included closing the books for prior months, providing monthly reporting to its PE and debt stakeholders, preparing audit schedules, completing the annual audit, developing a 13-week rolling cash forecast, preparing the annual budget and Annual Operating Plan (AOP), and addressing inventory accounting.

The finance function also needed stronger capabilities across billing, accounts receivable and collections, inventory accounting, general ledger accounting, close accounting, purchase accounting, and Financial Planning and Analysis (FP&A).

The company had initially attempted to manage the work internally but recognized that it could not complete the necessary tasks properly or on time while also building the repeatable, scalable functions required for continued growth and acquisitions.

The Approach

Bridgepoint began with the immediate priorities around purchase price allocation accounting, debt covenant compliance, and the year-end audit. As we assessed the broader finance function, we identified gaps across people, processes, systems, accounting, reporting, and financial planning.

We then developed a plan that addressed both the immediate requirements and the longer-term finance structure needed to support growth. Rather than limiting the engagement to recommendations, our team provided hands-on execution and brought in experienced professionals across interim controllership, FP&A, inventory and cost accounting, technical accounting, process documentation, and ERP-related work.

The work included catching up balance sheet reconciliations, establishing a close checklist and reporting calendar, documenting standard operating procedures and key processes, improving inventory and cost accounting practices, implementing cash forecasting and budgeting, and completing the work required to manage the annual audit.

Bridgepoint also supported the company through a finance leadership transition. We assisted the PE firm and CEO in hiring a new CFO, provided organizational structure and role recommendations, and supported hiring and training. Before transitioning out, our team documented processes, trained permanent staff, and transferred ownership of the work to the internal team.

The engagement initially began as a short-term project focused on purchase price allocation accounting. After the first days and two weeks of discovery revealed the broader needs, the engagement expanded. Bridgepoint ultimately provided daily, monthly, year-end, and audit support over a five-month period.

The Results

• Shortened the monthly close by seven business days, moving from a 15-day close to an 8-day close through a more structured and consistent process.
• Delivered the annual audit on schedule, helping the company meet its debt covenant reporting requirements and avoid negative covenant issues.
• Avoided multiple millions of dollars in potential costs related to debt covenant issues, working capital, and borrowing interest.
• Created a consistent finance operating model with a close calendar, reporting calendar, reconciliation practices, standard operating procedures, and documented processes.
• Improved inventory and margin management by strengthening inventory processes and bringing finance and plant operations into closer coordination.
• Established the foundation for scalable growth with trained staff, defined roles, improved use of systems, and repeatable processes that can support future organic growth and acquisitions.
• Improved financial coordination across the organization by supporting more timely and accurate reporting among management, operating-unit finance teams, the PE firm, and debt provider.
• Supported a successful transition to the permanent finance team through documentation, training, organizational planning, and transfer of responsibilities.