Baruch Pappo

Baruch Pappo

Summary

Expert in corporate finance, accounting, operations and business strategy.

A strategic business partner and out of the box thinker. Successful record of accomplishments include restructuring, building, and managing accounting teams in a high volume and complex transactions environment, navigating a company through down cycles and capturing significant cost reductions through process redesign and productivity enhancements without compromising quality and performance. Collaborating finance with core operations and sales and developing productive cross-enterprise alliances that encourage creative thinking and teamwork.

·Hands-on Accounting, Finance & Operations Management

·Budgeting & Forecasting

·Tax Research, Planning, Compliance & Avoidance Strategies

·Cross-Functional Collaboration and Corporate Growth

·GAAP & Operational Accounting

·Revenue/Profit Optimization

·Cash and Treasury Management

·Vendor Relations & Negotiations

·Productivity Benchmarking

·Asset Liquidation, Corporate Credit and Banking Relations

·Business Valuations & Acquisition Due Diligence

·ERP Design, Integration & Process Automation

·Financial Reporting & Analysis

·Complex Financial Modeling

·Strategic and Operational Business Planning

Work History

Work History
Jan 2009 - Present

Chief Financial Officer

WorldMate, Inc. | MobiMate, Ltd.

A mobile travel software company backed by Motorola Ventures, BlackBerry Partners Fund and world-renowned angel investors. Hired to build the Accounting and Finance Department in the US, integrate and consolidate with foreign operations.  Key member of the company’s executive management team, actively contributing to corporate growth and business strategy.

  • Implement a tax-free corporate reorganization pursuant a tax ruling obtained by the Israeli Tax Authority, which established a US Parent and converted the former Parent to a Controlled Foreign Corporation (CFC).
  • Implement a tax strategy designed to eliminate U.S. Income tax withholdings on payments made to the CFC and avoid Subpart F income, on income transferred to the Foreign Subsidiary.
  • Implement a Transfer Pricing strategy base on a tailored benchmark analysis.
  • Introduce accrual accounting and software revenue recognition in compliance with SOP 97-2 and SOP 99-19.
  • Introduced and implemented the “waterfall” analysis technique to track the company’s key financial data and business drivers on a monthly basis and report to the Board of Directors.
  • Establish the framework for financial reporting and consolidation of foreign subsidiary, KPIs and business intelligence data requirements.
  • Hire an Accounting Manager and implemented new accounting software in Israel, resulting in a quick turnaround of the monthly financial reporting package.
  • Negotiated and closed a $1M venture debt funding with Silicon Valley Bank.
  • Upon hiring, systematically reevaluated material vendor contracts.
  • Renegotiated commitments and contracts with various vendors including the merchant services contract that resulted in the immediate return of a $40K chargeback withholding and over $70K in annual savings in merchant and payment gateway fees at 2009 volume.
Aug 2002 - Dec 2008

Chief Financial Officer & Chief Operating Officer

BrainstormUSA, LLC

National direct seller of educational software and computers to the consumer market. Over 200 employees and distributors with offices in major US markets, selling in over 30 states. Recruited to restructure the Accounting and Finance department, establish integrity in the financial reporting system and introduce sophisticated analysis and forecasting tools. Promoted to COO and challenged to restructure Operations. Manage a team of 30 direct and indirect reports consisting of the company’s call center, pre-collections, collections, credit, order processing & verification, customer service, procurement and technical support.

  • Uncovered material weaknesses in the company’s internal controls, which resulted in write-offs in excess of $1.2MM in 2002. As well as underreported liabilities and sales tax deficiencies in 17 states of approximately $130K. Negotiated voluntary disclosure agreements with the various states resulting in abatement of all penalties.
  • Restructured the accounting department, re-engineered the month-end closing process, design and implement a real-time accounting and reporting system and lead the move from an annual review to an annual audit. Went from five accounting staff and over 4 weeks for month end close to now staff of three and 10 days close (5 days for preliminary results).

  • Researched, advised auditors and implemented SOP 98-1 and SOP 93-7 following guidelines of FASB No. 154 (Change in Accounting Principle), resulting in an increase in working capital and net income in excess of $550K over the last two years.

  • Head the company’s tax planning and compliance. Formulate tax avoidance strategies to minimize taxable income flow-through while maximizing GAAP income. In 2005 engineered a book/tax difference in excess of $400K.

  • Convinced County authorities to grant the company Freeport exemption saving the company $10K annually in property tax.

  • Successfully represented the company through various states sales and use tax audits resulting in minor adjustments.

  • Formulate, review and revise company wide, standard accounting and operating procedures, flowchart and document internal controls, identify key controls, following the guidelines in SAS 109.

  • Continual review of cost containment and reduction initiatives, lead vendor contract negotiations which resulted in significant reduction of fixed costs in excess of $200K a year and variable expenses (gross margin increase from 72% to 76%) and increased profitability (EBITDA increased from $350K in 2004 to $1.7MM in 2006).

  • Moved the company from weekly shipments to daily shipments, which reduced order cancellations and refusals and resulted in a decrease of $200K in deferred revenues in 2007.

  • Responsible for reporting, budgeting, forecasting, and analysis of financial results as well as company’s operating and financial key indicators. Evaluate, and recommend strategies to support and improve all profit centers and new sales initiatives.

  • Provide expert advice regarding optimal capital structure. Attend to the company’s funding requirements. Participate in discussions with investment bankers, banking institutions, private equity and strategic partners regarding consumer financing, working capital lines of credit, sale of receivables portfolio and equity investment required to achieve the desired levels of debt and equity, while maximizing working capital, operating cash-flows and earnings.

  • Devised a plan for recapitalization and management buy-out of a passive investor group that provided current managing members a majority control.

Jul 2000 - Jul 2002

Corporate Controller

CIRREX CORP

Optical semiconductor company backed by HIG Capital, Lucent Venture Partners, CDIB Ventures and Imlay Investments.

  • Lead the company’s planning and budgeting processes by closely working with managers at all levels and deliver an operating plan for approval by the company’s executive team and board of directors.

  • Designed, prepared, and presented complex financial models, static and flexible budgets based on production volumes. Interfaced with senior executive management to develop long-term financial plans for various equity venture capital funding rounds.

  • Developed and implemented standard job-cost accounting system. Set up inventory control procedures, bill of materials for eight product lines, direct labor rates, fixed and variable overhead. Computed contribution margin, performed product mix analysis, price and efficiency variances analysis.

  • Prepared and presented board level monthly financial reporting package that included financial statements in conformity with GAAP, management discussion and analysis, rolling forecasts and supplementary financial analysis reports. Reviewed and provided division VPs and department heads with monthly P&L analysis.

  • Developed and enhanced financial and management information systems to assist pro-active commercial decision-making. Established policies and procedures. Ensured financial information systems support the organization and provide adequate internal controls and efficient reporting.

  • Managed bank lines of credit, treasury activities, fixed assets, operating and capital leases.

  • Successfully negotiated and raised $2MM in venture-debt, and $1 MM in multiple lease arrangements.

  • Directed the external preparation of corporate tax returns and year-end audit by a Big-Four firm.

  • Oversaw the company’s tax compliance, application of FAS 109 and computation of R&D tax credits. Communicated with Federal and State taxing authorities regarding taxation issues related to corporate income, sales and use, payroll and property taxes.

  • Advised executive management to take a tax position that consequently saved the company approximately $25K in sales and use tax in the first half of 2002.

  • Negotiated with vendors on equipment purchases in excess of $1MM. Achieved an average of 30% vendor discounts on new and refurbished equipment, providing the company cost savings in excess of $300K on budgeted capital expenditures in Q1, 2002.

  • Restructured and negotiated financing terms on existing and new operating and capital leases that coincided with the company’s short term and longer-term business plan, thereby reducing the company’s cash burn rate and extending its runway.

  • Selected, implemented and administered 401(k) plan and other employee benefit programs.

Jan 1996 - May 2000

Manager

AARONS, GRANT & HABIF, L.L.C.

Public accounting firm specializing in consulting, taxation, auditing and general accounting.

  • Responsible for corporate, partnership, fiduciary and individual tax planning for my book of clients.
  • Prepared and reviewed complex consolidated parent-subsidiary controlled group and multi-state tax returns.
  • Effectively settled IRS and various state taxing authorities disputes for clients.
  • Reviewed and prepared financial statements, tax returns, business plans and financial models.
  • Supervised a team of 4 to 5 staff and write-up accountants.
  • Advised clients on issues related to structuring of partnerships and business ventures.
  • Assisted clients with finance, accounting and tax related issues.
  • Responsible for consulting and preparing business valuations for a variety of businesses in numerous industries.
  • Prepared and reviewed financial statements, federal and state corporate, partnership, individual and fiduciary tax returns.
  • Analyzed offers for business acquisitions and their tax implications to the buyer and seller companies and shareholders.
Jan 1995 - Jan 1996

Controller

MANATEE CAPITAL CORPORATION

A finance firm specializing in factoring telecommunications receivables.

  • Maintained and tracked the company’s portfolio of investment in receivables on a daily basis, including the write-off of bad debt, monitoring and ensuring appropriate levels of allowance for bad debt.

  • Reconciled monthly all balance sheet accounts. Prepared monthly financial statements under deadline.

  • Developed financial analysis reports that reflected contribution margin by client and by type of receivables factored.

  • Accounted and reported on various brokerage accounts and investment partnerships with high volume of transactions in equity securities and options.

  • Managed bank line of credit, which included the computation of the borrowing base, making draws and re-payments on the line in order to attain the company’s funding requirements.

  • Assisted bank auditors and Big-Four auditors during quarterly and year-end audits.

  • Worked with system analysts developing in house application software dealing with receivables management. Selected, implemented and maintained mid-market accounting software, designed financial statements and other financial reports using FoxPRO report writer.

  • Prepared partnership and corporate tax returns of affiliated companies.

Aug 1993 - Dec 1995

Staff Accountant I, II & III

HABIF, AROGETI & WYNNE, L.L.P.

Largest independent public accounting firm in Atlanta and one of the top 100 accounting and consulting firms in the US.

  • Planned and prepared procedures for audits, reviews and compilations.

  • Performed agreed upon procedures and reported findings to management.

  • Tested, analyzed and reported on internal control structures.

  • Specialized in small business and middle market industry, including: preparation of monthly and year-end financial statements, projections, and payroll, sales and property tax returns.

  • Prepared and review of federal and state corporate, partnership, individual and fiduciary tax returns.

  • Consulted and advised clients regarding day-to-day accounting issues.

Education

Education
Jan 1991 - Dec 1992

M.Acc.

GPA: 3.75/4.00

Jan 1989 - Dec 1990

B.B.A.

GPA: 3.53/4.00

Graduated Cum Laude

Skills

Skills

Skills

Fluent in Spanish and Hebrew. Israel Defense Forces – honorable discharge with the rank of sergeant. Member Executive/CFO Roundtable. Member of the American Institute of Certified Public Accountants and the Georgia Society of CPAs. Member of FENG – Financial Executives Networking Group.   Computer skills: Excel (advanced), Word, PowerPoint, Access, MAS90, Great Plains, Fast-Tax, Pro-Fx, UltraTax, CCH Tax Research, ACCPACC2000, Crystal Reports, FRx, Creative Solutions, Peachtree Accounting and QuickBooks.

Certifications

Certifications
Sep 1995 - Present

Certified Public Accountant (CPA)

Georgia State Board of Accountancy