Accounting functions at this manufacturing company were separate with little staff cross-training, making it harder to shift resources and scale. Outsourcing quickly changed all that.
A Nasdaq-listed manufacturer based on the U.S. West Coast has revenues above $150 million annually.
The company operates in a market that has become more competitive and overhead costs compounded. Legacy systems and processes did not support scalability to accommodate growth.
The company chose to outsource accounting functions to Armanino, with all accounting roles except payroll transitioned in six weeks.
Armanino provided a flexible and collaborative outsourced accounting department that supported the company in achieving targets for spending cuts and greater efficiencies.
A global enterprise manufacturer urgently needed to revamp their accounting department to help meet new corporate cost-cutting goals and sought out an outsourcing solution.
They had communicated to shareholders how their new CFO and leadership team would transform accounting in a corporate playbook with these clear measurable goals:
The manufacturer needed a change that wouldn’t sacrifice accuracy, compliance or public reporting obligations. As they started evaluating potential accounting providers in November 2024, they looked for a strategic collaborator who could relaunch an accounting operation completely. Their accounting department structure and workflows were over a decade old and heavily dependent on manual processes. Accounting functions, such as payments and receipts, were separate with little staff cross-training, making it harder to shift resources and scale with growth.
Armanino’s accounting outsourcing services team decided against a generic proposal and instead directly referenced the company’s published strategic playbook, showing point-by-point how outsourcing could modernize the department and help achieve cost reduction goals. This proposal emphasized speed, governance, scalability and continuity. Armanino wanted to go beyond replacing headcount to build a modern accounting department that would eliminate manual and redundant processes. Armanino’s proposal spoke their language and matched their urgency.
The manufacturer’s need was so urgent that as soon as both sides decided to move forward, an Armanino team flew straight to their site, with final contract approvals still in progress and completed en route.
Although the industry standard enterprise accounting transition typically takes 90 to 120 days with several month-end close cycles, the Armanino outsourcing team achieved knowledge transfer in six weeks:
Both organizations committed to a disciplined project governance model, using daily stand-up calls and weekly formal status reports to surface issues immediately, appointing a dedicated project manager and using clearly defined roles and responsibilities for the manufacturer and Armanino teams.
The outsourcing model grew the client’s scalability and supported the company’s published targets, delivering measurable results in the first six months:
Armanino’s global resources played a significant role in the transition. To onboard an enterprise client quickly, Armanino deployed global talent on a follow-the-sun schedule that could collaborate in real time to answer questions quickly and solve problems as they emerged.
During onboarding, the global team documented processes, helped with knowledge transfer and took on transactional tasks. A U.S.-based team focused on high-value work and direct communication with the client, and the global team continued these efforts overnight to maintain momentum outside U.S. business hours. Armanino provided added support while unfolding leadership changes, shifting priorities and a changing structure for the accounting department.
Global resources continue supporting documentation, standardization and process improvements that help shorten the close cycle.
Legacy enterprise structures often create excessive process layering, with too many steps and complexities. Consequently, successful outsourcing involves simplification and rebuilding workflows. While a six-week onboarding is possible and can be successful, short onboarding is not ideal for most enterprises. Compressing major onboarding projects into a short timeframe can result in business downtime, incomplete knowledge transfer and integration issues. Enterprises should be cautious when planning transformation timelines.
The outsourcing relationship has been evolving. When new needs emerged, the manufacturer called Armanino. They used quarterly reviews to check what was working and what wasn’t.
In addition to accounting, the manufacturer has used Armanino’s Human Resources Outsourcing Services, CFO Advisory Equity Management to oversee and administer their stock-based compensation program and the Strategy and Transformation team during onboarding. Armanino also provided access to Microsoft Dynamics experts and educational AI workshops.
After the new accounting team was onboarded, an independent after-action review conducted by Armanino’s Strategy and Transformation team showed satisfaction with results.
Better accounting processes provide smoother financial reporting, help you optimize your tax strategy and provide useful strategic insights. Don't let hidden risks lurk in your outdated accounting workflows. Schedule a free consultation with our outsourcing experts to discuss how to generate value by modernizing your accounting department.
Tired of busywork and missed deadlines? Get a free, 30-minute, private consultation with our outsourced accounting experts.
