Hospitality Industry: They Provide Dry-Cleaning services to Hotel industries (almost 127 hotels).
Accounting; Book keeping in Quick books to begin with, later on transition to online Quick books. AR/AP Management, accounting in their customized software, SPOT.
They are a US based S-corp company based in the state of California, USA, engaged in providing friendly dry-cleaning services to the hotel industry. They used to invoice them on weekly basis, in couple of cases they were authorized to deduct straight away from their credit card.
Konnect Challenge : At Konnect’s end, the team used to receive Bank Statements, CC Statements, Loan statements, Driver bills (outsourced small dry-cleaners) & invoices.
Software : SPOT, was used, which a tailor made/ custom software used especially in dry-cleaning industry because of its special features, of Administration as well as Accounting purpose. But we also, used QB specifically for Accounting purposes.
Data presented : The past data availability of the company was in a complete mess, the Banks were not reconciled, the company was making good sales, but profit figures on books were not clear and acceptable to the management.
– The bookkeeping and accounting function was found to be completely ignored during initial assessment. While there was a book keeper on Payroll, due to no supervision work was never questioned. By the time the client realized the mess, it was too late. The client decided to outsource the department, & hence KCS came on the board.
– The Trial Balance (base document for Final accounts) and Management accounts reasonable, had real issues. Nothing was properly set up. There was urgent need for correction with respective to the Fixed Cost project (Cost center creation), which was completely ignored. Most of the expenses were entered under Admin and General categories, which made the cost control/Allocation of cost impossible.
– Pay trust working for notices, statements & other important documents were having issues with Notices mainly, since they were notices.
– Konnect the client appointed a SPOC (Single point of contact), from either side. Statements, for invoices that were raised and driver’s details, were sent using the e-mail and FTP channel’s.
– Konnect also had we had access (restricted) to Banks, credit cards, client’s server (where in different department used to upload the accounting related details).
– We had dedicated resource working on the same, with a back up resource (in case of emergency). We used to log in to their server, Bank, cc & procure the desired data, enter it into Quick books, and simultaneously SPOT.
– Konnect’s TL , the technical expert helped the resource to correct the one time Chart of accounts, template for Budget, variance Analysis, Management Report, cost control areas with graphical presentations.
– Reports: All statements i.e. weekly, bi-monthly & monthly statements for payment, AR management, profitability statements, budget, variance analysis.