The Challenge
The accounting team handling the accounting for this team was made up of the employees working for the other company. This entity was falling by the way-side and the books were unable to be verified. Banks needed legitimate quarterly reports and they were behind a year without any hope of being caught up.
The Solution
Banks will only hold off on reports for so long before they ask for their money back. We needed to work through all of the intercompany transactions in both entities to ensure everything was captured appropriately, and finalize the internal financial reports.
Step 1:
Identifying failures & finding solutions.
We found out that intercompany transactions were not all being captured, or were being recorded inaccurately and without enough data. We also revealed a gap in their inventory and asset tracking process. The plan was now to get everything cleaned up and set up tracking processes.
Step 2:
Getting to work and establishing accuracy.
Getting to work and establishing accuracy.
We got to work on the intercompany clean up and compared the transactions in both companies to make sure we didn't miss anything. We went through the Income Statement to find anomalies and missing expenses or sales, because the bank account was being mismanaged as well. We caught up all of the loans and leases that were unreconciled, and many other areas of financial correction.
Step 3:
Implementing new processes to move forward confidently and accurately.
After the cleanup we set up a method to track their inventory and assets consistently, and with enough detail that they were able to become U.S. GAAP compliant across the board. We established an intercompany tracking and recording process, as well as assignment and review processes for all bank, loan, and lease transaction entry and reconciliations.
The Results
We got them to the finish line. They were able to file not only the prior year’s financial statements with the bank., but the current requests as well. Once we finished, we helped support them with staying caught up, and they had no bank delays since.
Ask us how we can help.
Many companies struggle with problems like these. Maybe you have something a little different going on, or maybe you just need help and don't know what you need. You don't have to know everything about your accounting right now. You don't need to know how to do it, just how to recognize it. Reach out so we can get you there.
