Case Study

Issues triggered

Bookkeeping, Payroll and Tax related services to E-Commerce company

• Books was not properly closed by previous bookkeeper and having difference between books and prior tax return.
  Bank and Credit card were not properly reconciled and missing several transactions in auto bank feeds
  Sales posted two or three times due to any third party app and having million of sales invoices
  Purchase invoices posted incorrectly without considering tax amount and inventory items were not properly linked
  Payroll was not reconciled with third party payroll software because of no payroll gross up. Only considering net pay instead of gross pay and payroll taxes.
  Client was losing money over high inventory and no proper budgeting for future.
  Accounting staff having high cost with no knowledge about basic of accounting.
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Solutions

• We divided catch up and cleanup work in different phases and set milestone for each phase for quick turnaround.
  Client provided us access to marketplace, bank and credit card.
  We used third party app to remove irrelevant or duplicate transactions from books, which saved our time and money of client.
  After posting of all transactions with inventory in books we started reconciliation process. One of our team member reviewing random transactions to ensure correct categorization of expense and income. 
  Fixed payroll issues and opening balance difference in books.
  After general ledger scrutiny we got assurance that everything is matched like bank and credit card balances reconciled with bank, sales matched with 1099K, payroll matched with W3.
  We made standard operating process (SOP) for future reference.
  We had call with CPA and finalized books for tax return purpose.
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Advantage

• Since 2013 we are working with client. He has started 2 new business just because of proper bookkeeping and getting numbers for future planning.
  Client is getting all 3 books done within 5 days from month end so he can see profitability for each month on time. It help him to plan for new business ventures also. 
  Client was paying $1200.00 per month to old bookkeeper and we are charging only $300.00 per month.