Accounting in the portfolio: Ensuring control even without a CFO structure

In investment structures, portfolio companies, or growing corporate groups, it is not unusual for companies to lack their own financial management. Responsibility for accounting often lies with the management or operational units – in some cases, accounting is even completely outsourced. 

What appears efficient at first glance can prove to be a structural risk in everyday life: a lack of interfaces between accounting, tax consulting, and investment levels, unclear responsibilities for annual financial statements or reporting obligations, and considerable coordination efforts – especially when external requirements increase. 

No CFO, no control? Not necessarily. 

A lack of financial management does not necessarily mean a deficit – provided accounting is clearly structured and professionally integrated. Especially in portfolio structures with multiple investments or investment phases, it is crucial that accounting processes are not only formally correct but also coordinated in terms of content. 

This includes 

• Monthly and annual financial statements that are consistent across investments 
• Reporting structures and scheduling logic (e.g., for holdings, banks, investors) 
• Dealing with valuation issues, provisions, and distributions 
• Communication with tax advisors and auditors – even without a CFO as an interface 

Practice shows that the bottleneck lies not in booking, but in control. 

In many portfolio companies, accounting functions reliably at the operational level. The challenge arises at the interface with tax and business classification. Typical cases include: 

• Operating companies recognizing or reversing provisions without consulting investment controlling 
• Accounting policies changing over time because there are no central guidelines 
• Inconsistent valuation of investments, inventories, or projects 
• Tax issues not being communicated despite reporting obligations 

These effects are rarely the result of technical errors – rather, they result from a lack of structure in the interaction between accounting and ownership functions. 

Accounting: Structures instead of hierarchy 

Having your own CFO function is not absolutely necessary – but clear roles, standardized processes, and reliable communication channels are. 

The holding company must ensure that the operating units: 

• are involved in tax matters 
• have uniform accounting guidelines 
• know who is responsible for reconciliation 
• are aware of deadlines, responsibilities, and escalation channels 

This applies not only to capital market-oriented holding companies, but also to family-owned companies with shareholdings, private equity structures, or corporate groups with heterogeneous management. 

Professional accounting needs structure, responsibility, and involvement, not titles. 

The accounting departments of operating companies demonstrate their value not only through accurate figures, but also through their integration into a larger context: in terms of tax, financial reporting, and strategy. 

Where CFO structures are lacking, clear processes, external support, and defined interfaces can help to nevertheless establish the necessary capacity for control.  

What matters is not who is listed in the organizational chart, but who takes responsibility. 

Do you have any questions? Please feel free to contact us.