Multiyear Accounting Issues

Australia-Based CPA Firm Resolved Multiyear Accounting Issues with Outsourced Bookkeeping and Accounting Services - A Case Study

Our Customer

A medium-sized Tax Firm from Australia engaged in tax planning and preparation for a diverse and large group of small and medium-sized business enterprises with a successful track record of providing tax preparation, tax resolution, bookkeeping and accounting services.

The customer reached us through our website and sought our services for accounting and clean up activities in its QuickBooks.

Challenges faced by our customer

[info_list_father connector_h=”20″ listwidth=”0″][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″]Accounts executives in the Tax Firm couldn’t spare enough time for tax resolution activities as they were mostly busy in maintaining and updating a huge pile of books and records.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″]As it was the tax season, there was an increasing demand for clearing backlog and accounting activities from small business owners.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″]The tax firm didn’t have adequate manpower to manage the accounts during year-end and tax season.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″]Employing and retaining qualified and experienced accountants proved costly.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″]Regular Bookkeeping and accounting activities were taking up the majority of the firm’s time and it failed to expand high-end value-added accounting services of financial planning and tax consulting.[/info_list_son][/info_list_father]

Software

QuickBooks Enterprise

Project

The outsourcing project started with an initial duration of ten days and then extended to 500 man-hours in the very first month.

We selected a team of a well experienced and specialized team of accountants who had extensive experience in working with QuickBooks and were fully conversant with the complexities of accounting in QuickBooks and clearing backlogs.

The initial ten days were spent in designing the accounting process for updating six months of data and for three clients of the tax firm. The initial test phase of ten days was a huge success and our customer immediately agreed to increase more accountants.

We then outlined the scope of the project as

[info_list_father connector_h=”20″ listwidth=”0″][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-caret-right” iconclr=”#2891d2″ iconbg=”#f7f7f7″]Updating the books of accounts for all customers and last five years.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-caret-right” iconclr=”#2891d2″ iconbg=”#f7f7f7″]A quick turnaround.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-caret-right” iconclr=”#2891d2″ iconbg=”#f7f7f7″]Identify the nature of expenses through online research as many files were new with almost no previous accounting records.[/info_list_son][/info_list_father]

Actions Planned

To successfully meet the scope of the project we decided for the following actions

[info_list_father connector_h=”20″ listwidth=”0″][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]A two-pronged approach, one team reviewing and the other team processing for increased output, accuracy and consistency.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Planning and streamlining accounting process for increased transparency of files being worked upon.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Benchmarking processing rate for accountants and setting targets.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Communicating customer priorities to accountants and ensuring that data is posted in specific folders in the server.[/info_list_son][/info_list_father]
[info_list_father connector_h=”20″ listwidth=”0″][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Establishing free and open communication with our customer to understand the priorities of its business clients.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Scheduling daily activities for quick start and effective utilization of available accounting man-hours.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Emphasizing accuracy without compromising processing speed.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Change in the working time of accountants to ensure two hours overlap with US time for resolving queries and data clarification.[/info_list_son][/info_list_father]

Process Improvements

[info_list_father connector_h=”20″ listwidth=”0″][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#eef6f5″]Creating common vendor lists for general expenses for easy identification and quick posting.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#eef6f5″]Preparing a review checklist and implementing periodic process reviews periodically.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#eef6f5″]Introducing a process manual to document client-specific corrections and instructions to be used while processing any new file.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#eef6f5″]Documenting and implementing procedures for individual accounting activities to bring work uniformity and ensure inaccuracies e.g. transferring of data between MS Excel and QuickBooks.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#eef6f5″]Utilizing QuickBooks new features and shortcuts for quicker processing for recurring transactions and expenses from identical vendors.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#eef6f5″]Reducing turnaround time through batch postings[/info_list_son][/info_list_father]

Outcomes

[info_list_father connector_h=”20″ listwidth=”0″][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]More than 30 per cent reduction in man-hours resulting in savings of manpower cost.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Increased customer satisfaction through successful clearance of many years backlog.[/info_list_son][info_list_son style=”icon” size=”22″ width=”” height=”” titlesize=”15″ titleclr=”#000000″ icon=”fas fa-angle-double-right” iconclr=”#2891d2″ iconbg=”#ffffff”]Improved customer and value base due to new customers and high-end accounting services e.g. financial planning and accounting.[/info_list_son][/info_list_father]