Profile: A US Corporation with a German subsidiary. An IT company focused on building a platform to be your personal travel agent, to connect vendors and customers for ad hoc services (delivering gifts, food, packages, etc.)
Request: Monthly consolidated financials for investor reporting.
Issue: US and German entity has different chart of accounts and reporting methods due to governmental regulatory requirements and difference in accounting principles. There is also the issue of intercompany transactions and translation adjustments to account for FX variances.
Resolution: Since the parent company is based in the US, we revised the chart of accounts for the German entity to conform with US GAAP while maintaining Germany’s compliance. We also implemented a set of processes and templates to ensure both accounting teams were on the same page. Using monthly standardized templates and an accounting checklist on shared google excel, we were able to keep track of daily progress and put in place smooth operations meeting deadlines on a monthly basis for consolidated financial.
Profile: A high traffic global events company (US, Mexico, UK), creating events at university campuses. On average 4 events per weekend, over 5000 students per event.
Request: Implement controls and processes to handle the mass volume of monthly transactions.
1. Keeping track of vendors, contractors, employee reimbursements and payments (averaged 40 bills per week, not including payroll). 2. 4 different currencies, 3 bank accounts, 7 employee credit cards. 3. Categorizing expenses, matching costs of goods sold to the correct events to comply with US GAAP.
1. Created a separate email for all vendor and contractor related requests. Daily review of this email account for input in accounting software and schedule payments through various payment platforms. Also resolving any payment issues that may arise. Separated payment types on multiple platforms for clarity.
* Bill.com for domestic vendors * Expensify for employee / contractor reimbursements, as well as keeping records of all receipts, bills * Justworks for employee salaries and consistent contractor payments (1099s) * Paypal for as needed domestic and international contractors * Transferwise for large international transfer amounts.
2. Organized team for monthly bank and credit card reconciliation agreeing to all statement balances. Different currencies are held in separate accounts and any FX differences are resolved accordingly.
3. Worked with management to get a full understanding of the business, recognizing which costs are events related versus operating costs. Maintaining a schedule of all events updated on a quarterly basis to ensure revenue is recorded in the correct period. All costs of goods sold are associated with an event specific tag to accrue the expense when the event actually occurs and not when cash is paid.
Profile: Accounting firm in New York, established for 12 years providing financial and CFO services for Technology companies.
Request: Partnership for expansion.
Issue: Had difficulties in finding and retaining good in house accountants. Contractors and employees were not knowledgeable in US GAAP accounting principles with slow response time. Low client satisfaction due to not enough staff to handle over 50 clients.
Resolution: All our accounts are trained and supervised by a US licensed CPA to be knowledgeable in US GAAP and reporting requirements. We provided 24 hour or less response time with requests turnaround of 1 to 5 business days depending on level and volume of work needed. We also white-labeled our service by representing ourselves as part of their company and thus was able to communicate directly with clients, reducing their workload dramatically so that they can focus on obtaining new clients and producing quality work for client retention.
Request: Handle their bookkeeping so that they can just focus on selling
1. Only basic knowledge of accounting, and maintained bookkeeping themselves through quickbooks or xero. 2. Previous bookkeepers were not responsive and they have no idea the status of their books. 3. Improper reconciliation of accounts and intermingling of personal and business expenses.
1. We have experienced Quickbooks Proadvisors and Xero Certified accountants handling the bookkeeping.
2. Our company’s policy is 24 hour response time. We also created a shared google excel spreadsheet updating on all work performed so client would know what is done in real time. Deadlines were implemented with expected monthly deliverables for all reports requested. We also redid any prior year incorrect transactions and completed reconciliation up to date.
3. We requested for a strictly business related account / credit card and no personal transactions be made. This will avoid any year end issues when filing taxes or audits if any.
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