ISL Process Model

Process maps, process detail, and transition plan for ISL accounting operations

Prepared by Kurtis Hanni | bisoncfo.com | April 2026

Overview

Process Maps

Process Details

Transition Plan

ISL Accounting Overview

A single view of ISL's accounting operation: how the cycles connect, where the documentation gaps and single-point risks are, what runs when, and the three critical risks that shape the transition plan. The decision has been made: Bison CFO absorbs controller scope (Option B confirmed, April 16 2026). Phase 0 targets completion by end of May; notice to Lynn targeted for June 1. Use this page to orient, then drop into any cycle map, process detail, or the transition plan for deeper context.

How the Cycles Connect

Transaction cycles (AP, AR, Payroll, Tax) feed month-end close, which produces financials that drive banking and external reporting. Click any cycle to jump to its process map.

Process Coverage at a Glance

42 processes across 7 cycles. See the full interactive list on the Process Details page.

Three Critical Risks

From the Transition Plan, these are the three things that must be resolved before any transition can happen.

1. Cash Flow Visibility

Lynn is the single source of truth for cash position. 5 of 6 related processes have no SOP. Sweep accounts may reduce manual LOC management burden.

2. Payroll Processing

Twice monthly through Commonwealth/Assure. Zero documentation. Biggest SOP gap.

3. Approval Timeliness

Wire/ACH dual-auth, check runs, credit applications need same-day response and/or physical presence.

Cycle Summary

Each cycle at a glance. Click any card to jump to its process map.

Dive Into

Process Maps →

Swimlane flowcharts for each cycle

Browse All

Process Details →

Full list of 42 processes with owners, SOPs, gaps

Review

Transition Plan →

Three risks, work order, confirmed structure, cost/savings, function assignments

Accounts Payable

Accounts Receivable

GL / Month-End Close

Payroll

Tax Compliance

Banking & Treasury

Standalone SOPs

Accounts Payable Cycle

Invoice receipt through payment and clearing. Shows the three parallel payment paths (AD batch, manual ACH, physical check), the $5K decision threshold, and where LM becomes the bottleneck at clearing.

Click any process node to jump to its details on the Process Details page.

Key Risks: Payment selection criteria ($5K threshold) are tribal knowledge. AD clearing is manual cross-referencing. Physical check run is single-point-of-failure (LM only). No documented backup for wire/ACH dual-auth approval.

Accounts Receivable Cycle

Three parallel flows: invoicing (GR), cash receipts (LM + BK), and collections (BK). The cash receipts branch has a key decision point (customer vs. miscellaneous) that drives how cash is posted.

Hover any process node for full details. Use "View in details" to jump to the Process Details tab.

Key Risks: All cash posting is LM-only. The customer vs. miscellaneous decision logic is undocumented. BK's collections process has no aging-based escalation triggers. Customer refund SOP is still in "discovery" stage.

GL / Month-End Close Cycle

Sequential close from AP close package through financial statement production and month close. Shows the deadline cadence (10th, 15th, 20th) and the judgment-heavy steps that live entirely in LM's head. Note: bank reconciliation occurs before GL review so reconciled balances feed the analysis.

Hover any process node for full details. Use "View in details" to jump to the Process Details tab.

Key Risks: GL review & margin analysis is entirely judgment-based (kitting distortion, back-order accruals). Financial statement production & distribution is manual INxSQL-to-Excel transfer. Year-end close has no SOP and INxSQL cannot reprint financials after execution.

Payroll Cycle

Twice-monthly processing (1st and 15th). Linear workflow between LM, ownership, and Commonwealth/Assure. Lynn identified this as one of the biggest SOP gaps: zero documentation exists.

Hover any process node for full details. Use "View in details" to jump to the Process Details tab.

Key Risks: Zero documentation for the entire payroll cycle. Only LM knows the process. Twice-monthly cadence means any disruption is felt within 2 weeks.

Tax Compliance Cycle

Primarily a monthly rhythm: check the Filing Frequency Template, determine which states have returns due this period, file and remit by due date. KR owns execution; LM handles reviews, new registrations, and audit responses. Annual Section 263A sits outside the monthly rhythm.

Hover any process node for full details. Use "View in details" to jump to the Process Details tab.

Key Risks: 20+ state filings with no central tracking beyond KR's spreadsheet. Alabama audit active. Virginia Beach business license under audit going back 4 years. Section 263A compliance unresolved since October 2025.

Banking, Treasury & External Reporting

Five independent flows grouped by frequency rather than a single sequence: daily cash report, twice-weekly cash forecasting, monthly borrowing base submission (by the 20th), as-needed wire/ACH dual-auth, and annual license renewals.

Hover any process node for full details. Use "View in details" to jump to the Process Details tab.

Key Risks: Daily cash report and cash forecasting have no SOP and no backup. Borrowing base is a banking covenant with no documentation. Wire/ACH approval has no documented backup approver if LM is unavailable.

Standalone SOPs & One-Off Procedures

Processes that don't fit into a sequential flow. These are the maintenance tasks, one-off procedures, and SOPs that exist alongside the mapped cycles rather than within them. Flagging them here so they don't get lost.

Cycle 7 - Daily Operations & System Maintenance. These are independent daily/weekly/as-needed tasks, not steps in a flow. Most have no SOP documented.

Other standalone SOPs that exist inside mapped cycles. These SOPs exist but sit alongside the main process rather than inside its flow. They're worth knowing about but don't belong on the flowchart.

Key Risk Areas (Updated 4/6/2026)

CRITICAL Lynn concentration: ~27 processes owned, ~15 no one else can perform. Financials, payroll, borrowing base, bank rec, and month close all stop if he's unavailable.

HIGH Year-end close has no SOP. INxSQL cannot reprint financials after year-end close executes.

HIGH No written decision logic for payment selection ($5K threshold), GL review judgment calls, or accrual/reversal decisions.

HIGH Tax compliance: 20+ state filings with no central tracking. Alabama audit active. Virginia Beach business license under audit going back 4 years. Section 263A unresolved.

MEDIUM Manual reconciliation burden: AD clearing, ACH clearing, CC recs, bank recs all manual cross-referencing.

MEDIUM No backup wire/ACH approver documented. Dual-auth requires LM with no failover.

Filter by owner:

Three Critical Risks That Must Be Resolved

These are the three things that need to be addressed before any transition can happen. Each risk is presented with the processes it affects and the current documentation status.

Risk 1: Cash Flow Visibility & Decision-Making

Cash flow is the lifeblood of ISL's operations. Today, Lynn is the single source of truth for cash position. He compiles the daily cash report, codes automatic bank debits/credits, processes miscellaneous cash receipts (LOC transfers, CC payments, lease payments), manages the cash requirements forecast, and controls credit application timing against payment runs. If this chain breaks, leadership loses the ability to make cash-informed decisions.

Processes at risk: Daily cash report (6.1), auto-payment coding (7.1), misc cash receipts (2.3), cash requirement forecasting (6.2), credit application processing (7.6), customer cash receipts (2.2)

Status: 5 of 6 processes have NO SOP. None have a trained backup.

Mitigation note: Sweep accounts could automate LOC draws/repayments based on target balances, reducing the manual daily LOC management burden and creating a safety net during transition.

Risk 2: Payroll Processing

Payroll is processed twice monthly (1st and 15th) through Commonwealth/Assure. Lynn gathers data, submits 3-4 days before payday, gets the register back for approval, then keys the GL report into INxSQL. This process has zero documentation. It must be documented and understood before any transition discussion moves forward. This is a prerequisite, not a phase.

Processes at risk: Payroll processing (4.1), 401K administration (4.2), insurance/WC audits (4.3)

Status: All three have NO SOP. Only LM knows the full workflow. Phase 0 priority.

Risk 3: Approval Timeliness & Physical Presence

Lynn currently provides real-time approvals on check runs, wire/ACH dual-authentication, and credit applications. These require same-day (often same-hour) responsiveness. Check runs require physical presence (printing, stuffing, mailing). An external resource faces latency on these time-sensitive tasks.

Processes at risk: Physical check run (1.6), wire/ACH approval (6.4), credit applications (7.6), AD batch clearing (1.4), manual ACH approval (1.5)

Note: LOC transfers and inter-account transfers do NOT require dual approval per Lynn (4/6/2026).

Takeover Work Order

Confirmed April 16, 2026: Bison absorbs controller scope (Option B). Target: notice to Lynn on or around June 1, 2026, with 6-month severance through end of 2026. The goal is day-one readiness: be fully prepared that we could manage everything the moment notice is given, even though the ideal is a phased transition with Lynn shadowing.

Confirmed timeline: Phase 0 must complete before June notice. Phase 1 starts the day notice is given. Phase 2 targets the June close (done in July) as the first close Bison runs with Lynn shadowing. Lynn stays active for 1-2 months post-notice, then shifts to "answer our calls" for the remaining severance period. Be prepared to flip the switch immediately if needed.

Phase 0

Document Before Notice (Complete by End of May 2026)

Now through May 31. Kurtis calls Lynn next week to push on these items.

These three have the biggest consequences if unmanaged. Position this work as a general SOP / documentation project. Kurtis estimates less than 30 days to complete all three. Year-end close can only be captured while Lynn is actively running it. Borrowing base is a banking covenant with a monthly deadline. Payroll runs twice a month and has zero documentation.

#	Process	Freq	Why Phase 0
3.8	Year-end close	Annual	No SOP. INxSQL cannot reprint financials after close. Must be captured during next year-end. Highest consequence if lost.
6.3	Borrowing base report to Towne Bank	Monthly (20th)	Banking covenant. No documentation. Only LM knows format and data sources. If missed, covenant risk with bank.
4.1	Payroll processing	2x/month	Zero documentation. Twice-monthly cadence = any disruption felt within 2 weeks. Must be captured before notice.

Phase 1

Daily & Weekly Operations (Day One After Notice)

Starts immediately when Lynn is told (~June 1, 2026)

These run daily or weekly. Bison takes ownership from day one; Lynn shifts to backup and validator. Cash-flow-visibility processes (Risk 1) are in this phase because leadership can't lose visibility during transition. Physical check run stays internal (physical presence required). The team must be ready to run all of these without Lynn if necessary.

#	Process	Freq	Handoff Approach
6.1	Daily cash report	Daily	Capture Lynn's template and sources. Bison produces from day one; Lynn reviews first week then steps back.
7.1	Auto-payment coding on cash report	Daily	Document which auto-payments exist and coding rules. Internal team takes over with Bison review.
2.2	Customer cash receipts posting	Daily	Internal team posts. Requires decision-logic doc (customer vs. misc) before handoff.
2.3	Miscellaneous cash receipts	Frequent	Bison owns given the judgment (LOC, CC, leases). Lynn reviews first month's entries.
7.2	Insurance files & coding	As needed	Simple handoff once Lynn documents which entries go where. Internal team handles.
7.3	Interface error checking	Daily	KR already has some exposure. Promote to primary with Bison backup.
7.6	Credit application processing	Frequent	Timing logic must be documented. Bison owns because it ties to payment run timing.
1.3 / 1.4	Cash requirements report & AD clearing	Mon/Wed/Fri	KR continues running report. BK continues on payment decisions. Bison takes clearing role from LM.
1.5	Manual ACH approval (dual-auth)	~5/week	Requires banking policy decision (Risk 3). Either Bison becomes signer or internal designee is added to Towne Bank.
1.6	Physical check run	Weekly	Stays with internal team (physical presence required). Lynn walks through first run. Consider reducing check volume.
6.4	Wire/ACH approval (dual-auth)	As needed	Same banking policy decision as 1.5. Must be solved in Phase 1.

Phase 2

First Close: June Close (Done in July 2026)

July 2026. Bison runs close; Lynn shadows and validates.

This is the first month-end close Bison runs. Lynn walks through each step, but Bison owns the work. Second close (August), Lynn only answers questions. By September, Lynn shifts to "answer our calls" mode for remaining severance. GL review and margin analysis (3.4) is the hardest judgment-based piece and stays with Bison permanently.

#	Process	Freq	Handoff Approach
3.7	Bank reconciliation	Monthly (10th)	SOP exists for INxSQL mechanics. Lynn walks through merchant deposit and AmEx Mantech cross-refs once. Bison owns.
3.1	Journal entries (depr/amort)	Monthly	Requires fixed asset schedule from Lynn. Bison preps, internal team posts.
3.2	Prepaid expense recording	Monthly	Requires prepaid spreadsheet handover. Bison maintains going forward.
3.4	GL review & margin analysis	Monthly	Highest-judgment process. Bison owns permanently. Captures kitting logic and back-order accrual rules as SOPs.
3.5	Financial statement production & distribution	Monthly (by 15th)	Bison produces and distributes. Bison reviews before going out. Bank and CPA distribution lists handed over.
3.3	Close the month in INxSQL	Monthly	Mechanical step after FS produced. Good SOPs already. Internal team executes under Bison direction.
1.11	Recurring payments (rent + LOC interest)	Monthly	Rent SOP exists. LOC interest schedule must be handed over from Lynn.
6.2	Cash requirement forecasting	2x/week	Bison integrates into 13-week cash flow forecast already in place.

Phase 3

Annual Items & Lynn Wind-Down (Aug - Dec 2026)

Lynn on "answer our calls" from ~Aug/Sep through Dec 31, 2026 severance end.

These run once or a few times a year. Lynn's job in Phase 3 is to hand over files, vendor contacts, and calendar dates. He should not be executing these post-notice. During the "answer our calls" period, Lynn is available for questions but not performing daily work. Active audit responses (Alabama, Virginia Beach) may need to stay with Lynn through resolution.

#	Process	Freq	Handoff Approach
4.2	401K administration	Ongoing + annual audit	Vendor contact and prior audit files from Lynn. Bison oversees.
4.3	Insurance & WC audits	Annual	BK already involved; continues. Bison supports.
6.5	Property/business license renewals	Annual	Build master renewal calendar. Virginia Beach audit (4 years back) still active; Lynn sees that through or hands to Bison.
5.3	Section 263A inventory tax compliance	Annual	Stewart & Co. drives. Bison coordinates. Still unresolved from October 2025.
5.2	Sales tax review & audit response	Varies	Alabama audit and Virginia Beach audit responses stay with Lynn through resolution or transfer to Bison.

Confirmed Structure (Option B)

Confirmed April 16, 2026. Option A (overseas contractor) was evaluated and rejected due to government contract concerns and risk tolerance. Bison CFO absorbs controller scope directly (Option B).

The Three Layers

Layer 1: Bison CFO - Strategy & Review

CFO meetings, financial reviews, sales pipeline reviews, 13-week cash flow forecasting, QBRs, annual planning, banking relationship (Towne Bank). Bison reviews all controller-level output before it goes to leadership, the bank, or Stewart & Co.

Layer 2: Bison CFO - Controller Scope (NEW)

Bison absorbs all controller-level execution currently handled by Lynn: month-end close, financial statement production, GL review & margin analysis, JE preparation, bank reconciliation, borrowing base report, payroll coordination, year-end close, daily cash report, cash forecasting. Single point of accountability: Bison owns both strategy and execution.

Why Option B

Fastest to implement (no recruiting/training cycle)
Bison already understands ISL's financials
Single accountability for strategy and execution
Higher quality control on close and financials
No overseas contractor risk for government contract work

Layer 3: Internal AP/AR Team

1-2 people, on-site. Daily transaction processing requiring physical presence and live INxSQL access: invoice receipt/entry, AD batch upload, check runs, credit card recs, vendor recs, AP close package, 1099 reporting, S&U tax filing execution.

BK + GR (unchanged): AR collections, payment decisions >$5K, ACH initiation, cash report balancing, CC monitoring, invoicing, AP approval.

Option A: Evaluated and Rejected

Overseas outsourced controller was considered but rejected. Government contract work (defense customers, WAWF, DLA) creates risk with overseas resources. Per Chris Faison and Bayne Keenan: "the overseas is very scary" given ISL's government contract portfolio. This option is off the table.

Cost / Savings Comparison

Per Chris Richards' request: what does the cost picture look like if everything transitions to Bison? This section will be populated with specific numbers once the scope is finalized. Key factors:

Current Cost (Lynn)

Lynn's fully-loaded compensation (salary + benefits + 401K + insurance). Plus the risk cost of single-point-of-failure on 27 processes with limited documentation. Severance: 6 months through end of 2026.

Option B Cost (Bison)

Bison controller scope fee (TBD based on hours). Eliminates Lynn's salary, benefits, and single-point risk. Net savings depends on final scope and hours. Bison to provide detailed pricing once Phase 0 documentation clarifies actual time requirements.

Severance & Transition Structure

Proposed 6-month severance (June through December 2026). Structure discussed:

Months 1-2: Active Transition (June-July)

Lynn continues working while Bison takes over processes. Lynn shadows on first close (June close done in July). Daily ops transfer immediately. Lynn validates Bison's work.

Month 3: Reduced Role (August)

Bison runs second close independently. Lynn answers questions only. Available for escalations but not performing daily work.

Months 4-6: "Answer Our Calls" (Sep-Dec)

Lynn available by phone/email for questions. Not performing any accounting work. Active audit responses (Alabama, Virginia Beach) may still need Lynn's involvement through resolution.

Where Lynn's Processes Go (Option B)

Preliminary assignments for Option B (Bison absorbs controller scope). Use the dropdowns to adjust assignments. Changes update the summary counts automatically. Color key: Bison (navy), Internal Team (green), Split/Shared (purple).

#	Process	Cycle	Freq	Complexity	SOP?	Assignment (Option B - Confirmed)

Prerequisites: Before Transition Begins

These must happen before notice is given. Most are Phase 0 items targeted for completion by end of May 2026.

1. Document payroll end-to-end (Phase 0)

Zero documentation. Capture full Commonwealth/Assure workflow, timing, GL entry process. Priority #1 for Lynn call next week.

2. Document cash flow chain (Phase 0)

Daily cash report, auto-payment coding, misc cash receipts routing, credit application timing logic.

3. Resolve approval mechanism

Who provides dual-auth for wires/ACH when Lynn exits? Does Towne Bank allow remote signers? Can Bison be added to the bank portal?

4. Document year-end close (Phase 0)

INxSQL cannot reprint financials after year-end close. High-risk, once a year, no SOP.

5. Document borrowing base report (Phase 0)

Banking covenant. Only LM knows format and data sources. Monthly deadline (20th).

6. Train internal team on cash receipts posting

Currently only LM posts cash. Must be transferable to the internal team.

7. Complete remaining SOPs

14 of Lynn's 27 processes have no SOP. Option B is more forgiving than outsourced controller, but still recommended for continuity.

8. Explore sweep accounts with Towne Bank

Automated LOC draws/repayments based on target balances could reduce manual cash management burden and create a safety net during transition.

9. Catalog INxSQL help documentation

INxSQL has built-in help documentation within the software itself (not on their website). This is an additional resource for documenting processes and training.

Open Questions (Updated 4/16/2026)

Resolved: Option A vs. B (B confirmed), Lynn's timeline (June 1 target, 6-month severance). The following items still require discussion:

1. INxSQL remote access for Bison

Can Bison get remote access to INxSQL? Critical for close, FS production, GL review, bank rec. Must be resolved before Phase 1.

2. Karla's future

Is Karla staying? If not, internal team hiring must happen before Phase 1.

3. Bison controller pricing

What additional scope/price makes sense for Option B? Bison to provide detailed pricing once Phase 0 documentation clarifies actual time requirements. CR requested full cost/savings comparison.

4. Internal team size

1 or 2 people? Volume and separation of duties determine this.

5. Section 263A

Resolved with Stewart & Co.? CR to provide details from CPA. Must be addressed before year-end regardless.

6. Check run alternatives

Can ISL move more vendors to AD or ACH to reduce physical check volume?

7. Sweep accounts with Towne Bank

Can sweep accounts automate LOC draws/repayments? Would reduce manual cash management burden during and after transition.

8. Lynn conversation approach

Kurtis scheduling call with Lynn next week to push on Phase 0 items. How to frame the SOP documentation work without tipping off the transition timeline?

Immediate Next Steps (Week of April 21)

Action items from the April 16 meeting:

1. Email to Bayne, Chris Faison, Chris Richards

Kurtis sends summary of this document, Phase 0 priority list, Option B cost/savings breakdown, and preliminary who-does-what assignment. Request their feedback and input.

2. Schedule call with Lynn

Kurtis calls Lynn next week to push on Phase 0 documentation items (payroll, borrowing base, year-end close). Frame as SOP/documentation project.

3. Finalize Option B pricing

Bison develops pricing for controller scope based on process inventory and estimated hours. Include cost/savings comparison vs. Lynn's current compensation per CR's request.

4. ISL leadership feedback

Bayne, CF, CR review the who-does-what assignments and provide input on any changes before Phase 0 documentation begins.