Building a Strong Financial Foundation for a Growing Life Science Company
A San Francisco Bay Area genome engineering, solutions company, in the early stages of growth, contacted Engine Room for assistance with accounting, financial best practices and processes, as well as assistance setting up accounting systems that could keep pace with its growth. The company’s accounting was being handled by an independent CPA firm, which provided bookkeeping and tax returns, using QuickBooks and Intuit Payroll. The bills were being paid, but there was no financial management reporting, board of director reporting, or accounting best practices. Also, there were no internal control processes in place.
We began the engagement by understanding the company’s current situation, along with its plans for growth. Then utilizing our experience with life science companies and with growing companies of similar size, we assigned a team and plugged the client into the Engine Room’s back office accounting and finance systems and processes.
During the first year we worked with the company, it commercialized and grew from 12 to close to 40 employees. As its growth continued, and to meet its needs, we implemented the following:
- Converted the accounting system to NetSuite under the Engine Room Business Processor Outsources (BPO) Arrangement. NetSuite provided the client with a fully integrated ERP to meet its current and future needs. The Engine Room team uses NetSuite to handle all accounting support. Client management is provided with the ability to access information via dashboard and management reports.
- Client management was also set up to provide required expense and disbursement approvals and other internal controls through NetSuite automated workflows. By using the Engine Room BPO approach, all of this was delivered at an extremely cost effective fee.
- Implemented a purchase order process and system to streamline the purchase requisitions and the approval and issuance of purchase orders
- Worked with company vendors to obtain credit terms, eliminating the need to use credit cards
- Managed HR functions, including employee onboarding, offboarding, and payroll. Also, provided the administration and selection of employee benefits
- Implemented invoicing and collections systems using proven Engine Room processes
- Provided assistance with risk management, and business insurance needs
- Assisted with state and local tax compliance, including sales and use tax, and income tax support
Engine Room is essentially the accounting and finance department for this life science company. We implemented the right size systems and proven processes for this company, and built a solid accounting and financial foundation for future growth. And, the company has grown.
To meet the demands of its growth, we have now expanded the team, and introduced new processes and procedures. While the company has hired a head of finance, we have continued our support by: working to create a five-year strategic plan; implementing advanced management and inventory systems while continuing to provide the accounting, finance, and HR. By plugging into our business engine, the company has been able to focus on its product and services and not have to worry about the back office functions.
Contact Us for Your Accounting Needs
Learn more about the accounting services we offer. Take a look at our company brochure and find out how to tap into our accounting and finance power for growing life science and tech companies in the San Francisco Bay Area and throughout California.
Contact us for more information.We offer outsourced start up accounting, and are accounting experts for tech and life science companies with deep experience to accommodate your growth from early stage to post-IPO. If you’re in the tech or life science field, then please call us to see how our team can serve you. In Santa Clara. Palo Alto. Berkeley. Emeryville. Pleasanton. All Peninsula towns. East and South Bay. South San Francisco.