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Bookkeeping

ABOUT CLIENT

For the last 7 years, the Client has provided ticketing, marketing, and rewards technology for concerts, festivals, and arts events throughout the USA, UK, New Zealand, Australia, India, and Dubai.

 

CHALLENGES

As a sole proprietor, our client had a great idea, a great vision, and a fierce determination to see it succeed. However, he had no support staff and was doling out all of the duties of his business on his own. For an event company, the main challenges include how to record revenue for a particular event, tracking all countries’ bookkeeping, recording, and payments, bifurcation of revenue by country and by event, analysis of profitability, and filing applicable sales tax returns country-wise. The crucial task was to ascertain applicable laws in each country as we needed to maintain country-wise bookkeeping likewise USA, UK, New Zealand, Australia, India and Dubai.

 

JOURNEY

In the beginning, we only provided back-office support to this client. Now we have been working with him for 2.5 years. Our services include record keeping, invoicing, tracking payments, AR/AP analysis, preparing monthly and annual financial statements (Balance sheet, Income Statement, Cash Flow Statement), and preparation and finalization of payroll of India and Dubai. The COGS and inventory discrepancy has been fixed, which has resulted in a profitable business. Now, he can run his business in different countries, including the USA, UK, Australia, New Zealand, India, and Dubai.

 

SOLUTION

He outsourced the workload of the bookkeeping process to us and only retained the filing of returns. We provide him with all the services whatever he asked us to do likewise in the previous month he asked us about one query related to Indian GST Law which we successfully solved.

  1. The query was: A client who is based in Mumbai has had events taking place across different cities in India. Customers have therefore been based both interstate and intrastate. They are asking us what type of GST we are applying to their event tickets. What would be the answer to this?
  2. And Another query he raised in his Employees in New Zealand would be paid unused paid leave at the end of their employment, and we calculated the exact amount, because the person executing the payroll in Xero entered the leaves incorrectly, resulting in a high amount to be paid to the employee. We calculated the exact leaves about the employee which is lower than the payroll accountant has collected this gives the client a financial benefit. This is what the client is expecting from us.
  3. On the third account, an Indian company bank charged a fee that did not apply to the client. We advised the client to go to the bank & reverse the charge since it did not apply to him. The bank has refunded the client.

 

 

 

ABOUT CLIENT

A Canada-based corporation that has been importing, distributing, and retailing firearms and tactical equipment in parts of Canada since 2011.

 

CHALLENGES/ISSUES FACED

  1. Limited workforce: The client has a workforce of 26 people and it requires the maintenance of a proper record of sales, purchases, and tracking payments. As there are only limited staff available, it becomes hard to keep the track of the same.
  2. Maintaining records/reports: The client has to maintain records of his sale invoices, payments, payroll report, and other financial reports, which required accounting and software expertise as well. Since the client is a single owner of his business, he cannot manage all of these things independently.
  3. Handling Taxes: With annual revenue of over $4 Million, tracking the tax numbers and complying with tax laws was becoming a hurdle for our client.

 

HOW OUR TEAM SUPPORTED/PROVIDED SOLUTION

The client handed over to us the bookkeeping process of his business. We provide him with:

  1. Customer wise sales recording in QBO;
  2. Tracking invoices in Dropbox on a weekly basis
  3. Bi-monthly payroll recording in QBO;
  4. Tracking receipts and payments of all the accounts;
  5. Preparing Tax reports quarterly;

Yearly financials for easy and better analysis of business financial conditions.

 

EXTRA INITIATIVES TAKEN BY MAS

Our extended financial services include tax advisory services and tax strategy planning. Also, we maintain regular communication with the client over emails. We update the status of bookkeeping weekly to our client over the emails.

 

RESULTS

Because he no longer had to keep records for his business, he was able to devote more time to his expansion plans. Despite removing a tremendous amount of the work from his shoulders, we were able to implement efficiencies that allowed us to charge significantly less than he expected. We also stopped fixing database errors, which also lowered his fees. The client now is focusing only on what he loves to do in his business, and not the bookkeeping, which he hated, he has more energy and passion than ever before.

 

 

 

ABOUT CLIENT

The client is engaged in the business of “delivering affordable golf equipment geared for beginners and casual players”, incorporated in 2019, located in California, United States.

 

CHALLENGES

The client’s business is based on Golf, and he has a great idea, a great vision, and is determined to succeed. In terms of challenges, we were facing several items such as SKU-code-specific inventory management, proper item-level sales invoicing, vendor inventory item-level bills, analysis of product profitability, sales updating portal, and sales tax returns. It was essential to calculate COGS and Inventory at the end of every month.

 

JOURNEY

Our client has been in business with us for more than 1.5 years. We help the client classify transactions from credit cards, banks, and PayPal, record sales from multiple platforms such as Shopify and Amazon, and maintain quantity-wise bills from the settlement platform. We are also responsible to review and reconcile VAT amounts and filing quarterly California VAT returns.

 

SOLUTION

The client outsourced the bookkeeping process to us. We provide him with proper bookkeeping services and share the financial information with him every month. We maintain good communication with this client by mail. Our suggestion was to integrate the Shopify sales platform with QBO which automatically records SKU-code-wise sales in the books and saves the client time.

 

RESULTS

As of now, we are providing monthly financials to the clients so he no longer has to worry about the record-keeping of his business. The client can spend more time on his expansion plans. Even though we had taken a huge burden off his shoulders, we will also receive extra work from them, and in this situation, they can also refer us to others.

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.

ABOUT CLIENT

The client established an e-commerce brand, selling household goods across multiple e-commerce platforms. The company is based in Santa Ana, California and serves all US, European and Middle Eastern markets.

 

CHALLENGES

The client is a first wave millennial who wanted to be his own boss. He started  with the goal of serving a large community and becoming one of the largest sellers in the household market. He was primarily concerned with generating revenue for the company and therefore was unable to handle accounting issues. E-commerce sellers face many challenges in accounting, including tracking sales and purchases based on stock keeping units, which requires the selection of adequate accounting software and managing the inventory through that software.

 

JOURNEY

We have had business relationships with the client for 3+ years. As a part of this process, we have met his record-keeping needs through soft closes and monthly closes of accounts on a bi-monthly and monthly basis, respectively.

A standard operating procedure and process notes have also been prepared for the stepwise recording of sales and purchases, defining classification heads and rules, and reconciling and closing accounts monthly.

 

SOLUTION

The bookkeeping process was outsourced to us so that he could handle the operational parts of buying, selling, and shipping. Using bank statements and credit card statements, we match purchases with invoices and record expenses incurred through credit cards. We communicate with this client through mails and slack and reconcile accounts based on the statements provided by him.

 

RESULTS

His record-keeping concerns were no longer an issue, so he was able to focus more on expanding his business into the US, Canada, and Europe. The client’s cash flow and finances were effectively managed by closing accounts on a monthly basis. Our firm also saw an increase in revenue thanks to the increased billable cost the client incurred for the services executed. As a result of outsourcing his bookkeeping, the client has generated more revenue since he was able to concentrate on his business.

Electronic Commerce: A business model that allows companies and individuals to buy and sell goods and services over the Internet

 

ABOUT CLIENT

Our US-based client sells products on multiple platforms, such as Amazon, Shopify, Etsy, eBay, etc. Our client has over 50 SKUs and sells on three Amazon marketplaces – US, Canada, and Mexico.

 

CHALLENGES/ISSUES FACED:

  1. Sales tax liability:  Under new rules, online retailers must remit taxes in nearly every country they do business in. These “economic nexus” rules specify revenue thresholds or sales volume thresholds in each country they do business in. With these rapidly increasing complications, it is difficult to register the business in every state and keep track of tax liabilities.
  2. Inventory management: Managing inventory is a tricky task for sellers, no matter how small the business is. New products and sales channels only complicate this further. We have to track:
    • what the client has;
    • what it’s worth, and;
    • where it’s located if the client has more than one warehouse or fulfilment center.

    Things get even more complicated as the number of SKUs, transactions, countries and marketplaces increases. Even a single sale/purchase impact the total inventory.

  3. Tracking different types of seller fees: In addition to listing fees, Amazon also charges fees for transactions, advertising, and for fulfilling each order. Tracking everything can be hectic and time-consuming.
  4. Handling returns: Return items in the following categories: Sellable/non-sellable, damaged, customer damaged, defective, carrier damaged, etc. Ecommerce makes tracking returns difficult. Most sellers let their customers return items that don’t fit, arrive damaged, or don’t work for some other reason. Despite this, returns throw a wrench into our accounting process. Refunds are given to customers, and the returned item(s) may need to be re-added to inventory. If the product(s) are not received in good condition, then we have to write it off.
    • Sample categories created for Sales:
    • Sample categories created for COGS:
  5. For tracking inventory movement more accurately, we prepare spreadsheets for all types of returned/damaged products.
  6. Accounting tasks we do on a weekly/monthly basis:
    • Categorize all transactions;
    • Stay up-to-date with taxes;
    • Distinguish between returns and chargebacks;
    • Practice accurate record keeping;

 

EXTRA INITIATIVES TAKEN BY MAS:

Our extended financial services include unlimited tax advisory services and tax strategy planning. We’ll even file your taxes for you! Also, we maintain regular communication with the client over weekly calls/emails.

 

SOLUTION

He outsourced the workload of the taxation process to us as well as reviewed the books. Bookkeeping is done by their staff under our guidance. Sales invoicing is accomplished through QBD, sales order and purchase order tracking on the site, tracking of funds from bank statements, tracking of shipments (for sales scenarios, product profitability, graphical analysis, state-by-state sales performance). We maintain adequate communication with this client through mails, Skype calling and Slack. We also prepare financial statements and file taxes on a regular basis.

 

RESULTS

    • Better inventory accuracy
    • Cost savings by making stock reports for better analysis
    • Increased focus on business expansion

As a successful small business owner, he can’t do everything. Bookkeeping services are even tax deductible, making them an excellent business decision.

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