Client Profile

 

Firm A has north of 100 years of collective experience in residential and commercial real estate development, investment, and management services. Over the period they have developed 165 properties in 5 different cities of Eastern and Western US. Having investment proposals from top banks of the western US with a budget of more than 1 billion dollars.

 

Overview

 

Needs

 

The firm needs affordable management solutions to streamline unmanaged accounting and maintenance activities arising due to decreased staffing in tough economic situations.

 

Challenges

 

Mismanagement of Inventory Warehouse

 

The firm is having In-House maintenance supply warehouse for all the properties to provide timely and quality products for maintenance. There was extremely limited work order management and maintenance staff work tracking. This increased the firm's repair expenses like HVAC repair, plumbing repair, and unit readiness expenses substantially. The lack of good Inventory management practices also develops unnecessary stock of items which leads to increased storage expenses and scrapping of long unused material.

 

Accuracy and Completeness of Bookkeeping/Financials

 

There was a lack of timely processing of seller and utility bills, because of which the firm was paying unnecessary interest and penalties. The firm was losing grip in negotiating with merchants for competitive rates despite large business volume. The firm had not adopted any proper month-end closing procedure for transparency of financials among business partners. The certainty of business partners was shaking and they had started raising doubts about the accuracy of data processing and completeness of financials. The quality of processing data was not extremely impressive, because of limited load distribution among staff.

 

Bookkeeping Software Limitation

 

The firm was using software for bookkeeping and inventory management, which had limitations while processing data entry. The capability of producing financial reports and digesting large volume of data was too extremely limited in the software. It was one reason that accounting staff was not able to produce timely output.

 

Solution

 

Changing Bookkeeping and Accounting Software

 

We have suggested changes in accounting software to software like Intuit QuickBooks, Sage, and Thomson Reuters amongst others that are made utilization of by our firm. These bookkeeping, financial statements, and advisory software that are electronic, has a bookkeeping and accounting module that is easy to utilize.

 

Expertise and Economical Staffing

 

We have provided an affordable staffing model consisting of 2 property bookkeepers and accountants and 1 financial analytics to meet the initial requirement of the firm. Property bookkeepers had the option to easily transmit data from previous accounting software to the new one that they picked. They streamlined the processing of data entry by establishing clear data input timelines. Their proactive role in asking for and following up on data with the client's accounting staff played a critical role in the process.

 

Centralization of Data

 

Previously the software where the data was segregated and entered in two different places, old accounting software which wasn't up to the mark. This prompted avoidable delays and glitches. One of the first activities was to consolidate/centralize these disparate data sources into one single source.

 

Establishing Clear Operating Procedures

 

One of the key pain points for the senior management was the haphazard and delayed month-end closing in the pre-outsourcing set-up. This was arising because of several reasons, with the key ones being the overloading of finance controllers in mundane accounting tasks, unorganized data storage, not very much laid out month-end procedure, and lack of clear deadlines. A lot of the process knowledge was tacit knowledge available just to the finance controller. The Financial analyst and the Team leader had extensive discussions with the finance controller and the senior management to map their reporting requirements, document the tacit process knowledge, and map the procedure and associated timelines. The closing process was further partitioned into AP, AR, and Bank and General Ledger sections.

 

Creating Management Dashboards

 

"A picture says more than 1000 words." Following this figure of speech, the financial analyst created visual dashboards representing key financial and operating information like vacancy %, collection factors, Rents collected, NOI, expense factor and critical ratios like DSCR, Debt to Equity, etc. These reports were created at multiple levels-property level, entity level, and even partner/investor level.

 

Enhancing Inventory and Work Order Management

 

After the above activities started yielding results, they then added another accountant for Inventory management, work order management, and maintenance technician's time tracking. As earlier, the accountant started with creating procedures for tracking inbound and outbound inventory. He also diligently tracked work order statuses and updated/closed the work orders based on feedback from the field. The prompt creation of new work orders based on the property manager's requests prompted fast resolution of tenant complaints. Tenant satisfaction has been increased after effectively implementing the above measures resulting in a significant reduction in the unit's vacancy levels.

Also Read: Top 6 Ways For Efficient Real Estate Bookkeeping

Results

 

(1) Timely Monthly Financials with month shut by the 6th of the month and final financials out by the 8th. The client got words of appreciation from bankers and investors for the timely accommodation of reports

 

(2) Management Dashboards improved the quality and clarity of financial information available to senior management and investors

 

(3) Established and documented accounting procedure with completely centralized processing, has made updated and accurate information available at all requisite levels

 

(4) 30% reduction in maintenance supply material and labor expenses through work order tracking, maintenance technician time tracking, and other associated initiatives resulting in dollar savings of more than $200,000 annually

 

(5) 40% savings in accounting costs after the first year of complete utilization of the accounting team

Unlike standard accountants who watch out for their customers’ overall financial statements and positions, tax accountants revolve solely around a customer’s taxes. This kind of accounting is constrained by the Internal Revenue Code, which follows unequivocal tax laws that individuals and associations need to follow when recording their tax reports. Tax accountants ensure their customers comply with all of the tax laws, and hold them back from social occasions and any punishments from the public authorities.

Also Read:- Accounting Services, Fitness and Sports in Denver

Tax Accountant

Tax accountant offers tax organizing advice to their customers, and help them with saving money during tax time. These specialists make strong plans for their customers to follow over the long run, keep them on track to meet their monetary goals, and safeguard them from paying more than they can afford by the tax cutoff time.

What do they do?

Tax accountants work with customers to prepare tax return records that comply with tax laws and rules. They keep their customers updated on their return information, and work with them before tax time to decide an arrangement that will help them with showing up at their optimal monetary targets and results. Tax accountants regularly work longer hours during tax time, as they make themselves available to their customers to make the tax cycle as straightforward as possible for them.

Accountants review monetary enunciations to ensure precision and help customers meet the essential rules and laws for taxes. They register the taxes owed and prepare tax returns, while furthermore guaranteeing customers’ taxes are paid on time. Accountants also work with their customers to prepare ways they can diminish their spending and update their compensation to additionally foster advantage. Also, they help their customers with making spending arrangements to stay on track during the year and develop things during tax time.

Also Read: Top Accounting Trends You Should Know in 2022

What Are the Responsibilities of a Tax Accountant?

 

• Examine Financial Statements: Tax accountants work with customers to get a sensible picture of their financial situation and monetary conditions as they set up their tax returns. Accountants review all pertinent financial statements to guarantee they line up with the tax laws and rules, and ensure they stay aware of the most current point of view on a customer’s financial situation.
• Make Budget Arrangements: One of the fundamental commitments of tax accountants is to help their customers find ways they can save money and stick to a useful spending plan. Accountants, in like manner, assist customers with arranging approaches to growing their income and further foster their overall usefulness; this includes educating them regarding what those changes can mean for their tax returns.
• Coordinate Financial Records: Not only do tax accountants work with their customers to prepare tax return documents, but they also help customers straighten out their financial records. Tax accountants keep their customers’ information on record and can get to it at any point when their customers have a specific request that requires a reference to prior reports.
• Figuring Taxes: Tax accountants figure the taxes their customers owe to the Internal Revenue Service (IRS), set up their tax returns, enlighten them concerning any limit or balance owed, and guarantee they don’t bring on any punishments for missed cutoff times.
• Surveying Accounting Systems: Productive tax accountants should review their accounting frameworks to guarantee they are just as comparably capable and convincing as could truly be anticipated. Doing so allows accountants to see any issues or goofs and correct them depending on the situation.
• Talking with Clients: Individuals and business visionaries like to remain connected to their tax bring the process back. Customers truly should feel like they get what’s in store with their tax return, similar to the cycle it takes to complete their information. Thus, tax accountants ought to talk with their customers and give them useful information.

Also Read: Top Accounting Trends You Should Know in 2022

Accounting Services For Fashion /Apparel

Global FPO has been working with fashion adventures for quite a long time and gained the essential experience and expertise in all the business cycles and value streams. As well as sufficiently settling all accounting difficulties faced by the fashion and apparel undertakings, we likewise guarantee to give total and observable business arrangements in the going with regions

An ideal level of stock ensures athe voidance of deals and benefit issues and opening up of business capital

Steady checking and lower cost of overheads

Getting ready, and Analyzing monetary records intermittently, and settling all issues with obligation holders and credit managers

Checking business processes through esteem stream planning and advising you on wastages and contraventions

Determining market requests, nature of accounting for the fashion business, and future development, and proposing possible M&A

Apparel industry accountants work with outside inspectors and inside CPAs to ensure timely and exact tax documentation, benefit enumerating, finance studies, and cost accounting. They might build up and keep up with accounting approaches and documentation methods across the association.

To explore more on Global FPO and its online Accounting/ Bookkeeping, Tax Return Preparation, Financial Statements, Accounting Advisory, Payroll Processing, and related Business Services, contact us at:

Phone (USA): +1 (832) 426-2521, +1 (347) 781 5928

Email: contact@globalfpo.com.