Background:
The Client provided a SaaS platform for cafeteria management. Additionally, the Client also
provided POS software to its customers. The client encountered various Reconciliation
Issues in its books of accounts. Majority of these reconciliation issues emerged because the
client was collecting payments on behalf of its customers. The client was then remitting
these payments back to its customers after deducting its commission, which complicated the
matter.
The company was approached by prospective investors when they decided to consult
Acupro for restructuring and cleaning its books of accounts. The company required us to
reconcile the account receivables and account payables to ensure that the balances
appearing in the books were correct and up to date. This would allow the company to get its
due diligence done within the stipulated time frame.
Issues involved/ client concerns
Gross Merchandise Value (GMV) and Company’s Revenue were not reconciling as
they were both not reflected correctly in the books of account;
The receivable and payable balances were not correct;
GST and other statutory dues were not correctly recorded and paid;
Books of accounts were not reflecting correct balances to facilitate timely closure of
statutory audit and due diligence;
Lack of experienced finance personnels; and
Stringent deadlines
How we helped
Obtained detailed understanding of the business and data maintained by the client;
Took control of the Balance Sheet of the client on the day of our on-boarding;
Reconciled all receivable and payable balances by carrying out complete
reconciliation; of GMV from the payment gateway reports and bank accounts of the
client;
Advised the client on the GST and other statutory dues to ensure correct compliance;
and
Aided the client in setting up a finance team.
Conclusion:
Acupro was successful in creating long term value for the client by not only getting the
client’s Audit and Due Diligence completed within the deadline but also standardizing and
setting up the accounting process.