IT/Software Industry : The company is a software & support partner of a major OEM, headquartered in Greenbelt.
Bookkeeping, Accounts Payable/ Accounts Receivable, Reconciliation- Bank, A/P, A/R, Credit Card and Paypal, MIS
The client is HP Software and Support Partner headquartered in Greenbelt, focused on helping both federal and commercial organizations to strengthen the connection between business operations and IT.
Konnect was asked to work on their server’s, using remote server access. Wherein old data also in QB (Quickbooks) was picked up and entered into the other QB enterprise version (Quickbooks Enterprise Version) that emerged as the main Book keeping software.
Major issues with Chart of accounts: While client was in need of customer wise/ Project wise profitability, no cost center was created initially in the books till we took over.
There was no track record of the existing customers/projects, which are ongoing, wherein Konnect’s accountants had to start from scratch. Looking at time sensitivity and data issues, we suggested that its better to re-enter the data than to correct.
Konnect prepared a working environment, wherein two computers where deployed, and re-entered the data into the Enterprise version of the software. Incorrect chart of accounts, negative balances in Banks, equity, huge numbers in uncategorized income and expenses, huge number in General expenses, made the work more difficult.
While client wanted Direct /indirect allocation of expenses, and one categories as general fixed expenses, lack of proper flow of information made work more and more difficult.
Re-entering of the data into new QB files, was not easy as it was not merely a data entry job, as in original files data was not shown in proper chart of accounts.
We entered data by checking each and every single transaction and simultaneously with the help of SPOC from client, allocated every single expenses to related project/customer. We gave due weight age to project wise classification.
We had to reset opening balances for each and every account in new QB file especially in case of AR and AP as we have to keep track for each and every invoice against which we received payments or for which we have made payments in case of AP.
The client is using factoring majorly, which was not at-all followed in the earlier process, so we had to begin with factoring and tracing the invoices accordingly and the accurate reflection of the cash flow. It was difficult to check the payment against invoices or payment received as advances.
Further to add, the factor money was not maintained in separate bank, but was hitting the Main checking account, which added to the analysis of every entry and reconciliation of the same.
The data provided by the client for re-entering was very vast .For the month of 2010 approximately more than 10000 transactions were there, including revenue and expenses etc; .
To complete all of the above , with a team of 2 plus 1 (senior expertise) , We completed in 4 months time period.
After completing the reentering work we provide them our analytical view on the PL and BS for the year 2010.
Konnect has moved on with Reconciliation and MIS services since then.