A Startup in the Health & Wellness Sector

ABOUT CLIENT

It’s a virtual care platform where artificial intelligence enables healthcare providers to deliver a new standard of chronic care, covering a wide range of health-related needs. We are primarily focused on the Health, Wellness, and Fitness sector.

 

CHALLENGES

As a young company with few employees and managing book-keeping in Xero, our client’s biggest challenge was that they didn’t have a dedicated employee to handle the accounting. Thus, the client had to perform all of the accounting transactions herself. We observe that the categorization of transactions was not properly maintained by the client, that no rules were followed, and accounting procedures were not appropriate. Being in a doctoral background, it was not possible for our client to maintain the books as per accounting principles. Therefore, we were contacted by the client to provide proper bookkeeping services. In addition, our client faced a major challenge when they received a notice of 169 thousand dollars in Delaware franchise tax including interest for 2019 & 2020 along with a reminder to file an annual report for the same period and this was shocking news for our client. They shared the same notice copy with us for help.

 

JOURNEY

We have been asked to maintain our client’s accounts in the software Xero, to track invoice records through billing software, and to receive payments through Stripe and payout through PayPal accounts. We have been working with this client for nearly 2 years now. During this time, we have updated their books for 2019 and 2020. Our team is now working on the books for the year 2021, and we are aiming to release our services and updated books within the first week of January. With the assistance of Stripe and Bills by software, we ensured that all of the AR records and invoices were updated accurately. We also filed the client’s Income Tax Return, Annual Report, and Franchise Tax. It has been our pleasure to maintain the books and make a proper categorization of expenses and filing of taxes.

 

SOLUTION

The client’s books were updated with the accurate categorization of transactions, a proper AR report was maintained, and as mentioned above, the biggest obstacle was paying the Delaware Franchise Tax to the government. In this case, the client was not financially ready. They were left with no other choice than to take a loan to pay these taxes imposed by the Delaware Department of Taxation. After we calculated the tax liability, we did further research to see how we could reduce this amount. Ultimately, we succeeded in reducing the heavy tax demand to only $731, resulting in a huge smile on the client’s face.

 

RESULTS

As a result, all the burden of bookkeeping gets shifted to us, and we do everything we can to keep the data accurate and up-to-date. The client is stress-free now, as he does not have to worry about maintaining bookkeeping, filing annual reports, financial statements, tax returns, and filing taxes on time. Now that the client can plan for the expansion of business, we will also get more work from them.

Our team was able to reduce the tax liability to a tiny amount, which provided a great deal of relief to the client. Our priority is to ensure the client’s satisfaction, and we succeeded in doing so.