Overview

In early 2024, a Bay Area advanced-materials startup, referred to here as CM, engaged Murdock Martell to stabilize and rebuild its accounting function after several years of operational disruption. The company had recently undergone major leadership changes, significant cash constraints, and the departure of its outsourced accounting firm. CM needed a partner who could restore order, rebuild credibility, and accelerate its path forward.

Murdock Martell assigned one of its Accounting Managers, known for her accuracy, calm approach, and strong communication and collaboration skills. She quickly became an essential partner to the CEO and helped guide the organization through a complex and turbulent financial period.

Client Background

Founded in 2007, CM specialized in custom circuit-board material design supporting next-generation chip interconnects. The company secured early traction, including government contracts and Convertible Debt funding. However, years of mismanaged expenses and weak controls left the company with declining revenue and severe liquidity challenges by the end of 2023.

With a new CEO and potential for renewed vision, CM began a turnaround. Leadership revamped its team, secured additional cash, and engaged a new CFO, who in turn brought in Murdock Martell to rebuild the accounting foundation.

The Challenges

CM faced wide-ranging issues, including:

• Fragmented financial records held by an outgoing firm on a single-user Desktop QuickBooks environment
• Out-dated accounting practices, incomplete vendor records, and missing bills
• Disorganized contracting and shareholder documentation
• Backlogged close processes
• High-risk compliance gaps
• Payroll managed by an out-of-state firm with complex payroll cycles and an independent 401(k) plan
• Frequent leadership turnover and resource constraints
• Ongoing cash limitations and multiple rounds of workforce reductions

The company needed structure, accuracy, and a partner who could build trust quickly.

Our Approach

Working initially with the CFO and later directly with the CEO, the Murdock Martell team took a structured, methodical approach to stabilize and rebuild key financial operations. The Murdock Martell team leader became the CEO’s trusted advisor providing clarity, stability, and operational insight during a period marked by legal challenges, shareholder negotiations, and ongoing cash constraints.

She also created a solid program management structure based on proven processes and principles:

1. Updated the Accounting Framework

• Transitioned accounting records from the outgoing firm
• Migrated the company from QuickBooks Desktop to QuickBooks Online
• Standardized chart-of-accounts usage and rebuilt reporting integrity
• Designed detailed checklists to streamline procedural and logistical workflows

2. Completing the Year-End Close

• Led the cleanup and completion of the 2023 financial close
• Identified missing documentation and implemented a remediation process
• Created structured communication channels across vendors, customers, tax authorities, and internal stakeholders

3. Payroll and 401(k) Transformation

• Managed the company’s move to a professional employer organization (PEO)
• Ensured proper transition of two payroll cycles without disruption
• Oversaw closure of the legacy 401(k) plan and transfer of employee balances
• Coordinated outstanding filings with the prior payroll provider to maintain compliance

Results

Despite complex and sustained pressures, Murdock Martell helped CM achieve dramatic progress:

• A fully rebuilt accounting environment accessible to leadership in real time
• Timely and accurate financial reporting to support board and operational decisions
• Streamlined payroll and benefits operations through the PEO transition
• Strengthened vendor relationships and improved payment processes
• Improved organizational discipline and documentation control
• Renewed confidence from leadership in the accuracy of financial information

The CEO consistently expressed appreciation for the reliability, communication, and steady leadership provided during a critical period.

Lessons and Impact

This engagement underscored the power of a resilient, fully-engaged accounting partner like Murdock Martell during times of instability. It also reinforced the importance of strong cross-functional relationships, transparent collaboration, and forward-thinking planning.

For Murdock Martell’s team member, the engagement provided hands-on experience leading a full accounting rebuild, navigating difficult organizational dynamics, and contributing to the survival of a mission-driven high-tech company under pressure.

Conclusion

The foundational work completed at CM with Murdock Martell’s resource alignment allowed the company to stabilize, preserve value, and pursue new opportunities. Through determination and partnership, both teams helped lay the groundwork for the company’s future.