Business Situation
A rapidly growing, privately held life sciences company reached a critical breaking point where its finance function could no longer support the business’s complexity. The combination of outdated accounting systems, manual processes, and fragmented data created significant internal strain. This breakdown resulted in several issues:
- An inability to accurately record diverse revenue streams (including licensing, milestone payments, and research partnerships)
- Frequent errors and delays in reporting
- High operating costs
- Persistently slow month-end closes
The lack of timely, accurate data obscured the company’s true financial condition and led to missed critical strategic opportunities. To address this, the client engaged SGA to lead a full-scale finance transformation. The mandate encompassed everything from a comprehensive initial diagnosis to the final implementation of modern tools and best practices.
SGA Approach
- Workflow Assessment: Mapped existing accounting and finance processes to pinpoint manual bottlenecks and inefficiencies.
- System Integration: Recommended and implemented a cloud ERP system that unified billing, revenue recognition, and reporting onto a single platform tailored for life sciences companies.
- Data Flow Automation: Established automated data connections from labs, commercial units, and research partnerships to minimize manual data entry and accelerate reconciliations.
- Revenue Recognition Policy Design: Developed standardized methodologies for recognizing complex revenue streams, ensuring compliance with regulations and industry best practices.
- Dashboard Development: Built user-friendly management dashboards for product profitability, R&D spend tracking, and real-time cash flow forecasting.
- Staff Training and Support: Delivered hands-on training for accounting staff, enabling rapid adoption of new tools and smooth transition to modernized processes.
Key Takeaways
- Finance Modernization: The adoption of cloud accounting tools dramatically improved efficiency and clarity across the finance function.
- Accelerated Closure: Automation and standardization of revenue processes eliminated manual errors, ensured compliance, and empowered the team to scale rapidly.
- Informed Decisions: Leadership now uses real-time financial dashboards to move beyond historical data and drive proactive strategic management.
- Long-Term Governance: The engagement delivered not only system upgrades, but also staff training and process rigor to sustain the financial gains over time.