Stout was engaged by a PE-backed company that provides wireline services for oil and gas basins and it’s PE sponsor to review the current stated accounting & finance and create a roadmap to accelerate the reporting timeline and provide solutions to enable unit profitability. Stout was tasked with aligning stakeholders on the roadmap, creating a tactical execution plan, and obtain buy in across the organization.

Rapid Assessment

Our first step was to understand the detailed current state of the accounting and finance function and identify process gaps and opportunities. We utilized Stout’s rapid assessment approach to examine the following:

  • The current state month end-close process identifying and assessing ways to close the books and report results/MD&A in 10 days.
  • Understand gaps/pain points in accounting processes and technologies.
  • Define data required and data capture processes to achieve unit level profitability and visibility into the underlying drivers.
  • Improve data flows reducing manual journal entries and improving access to critical data in different tools.
  • Enhance data to capture more granular unit level data natively (as opposed to through file uploads) elevating business intelligence.
  • Determine what accounting resources and organization structure is needed to support future requirements and growth.

Additionally, we leveraged the results of the assessment to capture detailed observations, measured the magnitude of key risks, and developed tactical recommendations to enhance the Company’s current processes.

Close Acceleration & Accounting Efficiency

We identified multiple manual processes within the monthly close and recommended automations reducing dependency on spreadsheets and manual interventions. This transformation both lowered the risk of human error and streamlined the close process, delivering two measurable benefits: (1) a 2–4 day reduction in the close timeline, and (2) significantly faster reporting and improved visibility for Management and the PE partner.

Unit Profitability

We delivered a set of initiatives to address the lack of granularity in inventory and labor data within The Company’s ERP system, establishing the ERP as the system of record for unit-level profitability. These changes enabled detailed tracking of operational inputs and true inventory cost. Stout delivered two measurable outcomes: (1) clear, actionable unit profitability visibility through improved data capture and structure, and (2) a 2–3 day acceleration of the monthly close driven by improved data input and workflow automation.

Stout as a Partner

As a result of the engagement, we established three tiers of strategic initiatives to enable the Company to achieve its desired outcomes related to unit profitability and close acceleration, while strengthening the accounting function. Stout was subsequently engaged to support the Company through implementation, enabling leadership to focus on driving strategic priorities with confidence in the strength, accuracy, and reliability of the finance and accounting function.