(The names, dates and entities have been changed/redacted to protect the privacy of the parties involved)
- Client: Retail Company
- Timeline: March 2024* – October 2024* (6 Months)
- Engagement: AR/AP Processing | Month End Closing | Process Improvement
- Industry: Accessories/Apparel
- Revenue: $ 6M++ / annually
Imagine implementing a powerful new accounting system
…to modernize your business operations, only to find yourself facing unexpected challenges just months later. This was the reality for Retail Company, a leading name in the accessories and apparel industry, when they adopted NetSuite in March 2024.
While their initial plan relied on a mix of an external accountant and an internal team member, Employee A, to maintain accurate financial records, the situation soon spiraled into a crisis that required swift and expert intervention. Here’s how Salora ERP , led by Thomas Ellis, CPA , stepped in to turn things around.
Challenge:
By mid 2024, Retail Company encountered a major setback when their hired external accountant stopped responding to emails and ceased all communication, leaving the CEO concerned about the integrity and accuracy of the accounting entries. Suspecting that errors might be embedded within their financials, The CEO approached Salora ERP to help validate and rectify the company’s accounts.
Solution Provided by Salora ERP:
Upon onboarding, it became immediately apparent that the accounting was far from accurate. A review revealed that entries had been made solely to balance month-end figures, often without any corresponding bank or American Express transactions, and the balances still failed to tie correctly.
To address this, Thomas Ellis, CPA from Salora ERP took decisive action:
- Full Transaction Reset: All entries from Retail Company’s NetSuite go-live date, March 16, 2024, through October were deleted to ensure a clean slate.
- Transaction Reconstruction: Tom personally re-entered transactions for the initial two months, getting Chase and AMEX accounts reconciled for March and April, ensuring alignment with actual bank records.
- Training and Oversight: From this point, Employee A managed transaction entries under Tom’s review, allowing a month-by-month approach to bring both accounts current while training her in effective reconciliation methods.
Throughout this process, Tom became adept at using NetSuite ’s bank and credit card reconciliation tools and mastered the bank transaction upload process, which streamlined bank data matching.
Accruals and Period Closing: Once reconciliations were verified, Tom worked with the CEO to identify and incorporate any necessary accruals. This final step enabled the team to close the periods and establish a functional, live accounting process for Retail Company.
With Retail Company on a constrained budget, Richard opted for a cost-efficient restructuring after the accounting process was restored. Employee A was let go, and a replacement Employee B was hired to handle Employee A’s role and to continue the new processes and procedures created by Thomas Ellis, CPA. The CEO enlisted Salora ERP ‘s assistance in vetting Employee B‘s capabilities and training them for the new processes, ensuring a smooth transition.
Results:
The engagement with Retail Company lasted six months and concluded successfully. By the end of the engagement, Retail Company had:
- Fully reconciled financials from their NetSuite go-live date.
- An organized, functioning accounting process, with trained personnel capable of managing their books independently.
- A smooth handoff to a budget-friendly, reliable solution, thanks to Salora ERP’s guidance and expertise.
This engagement ended on positive terms, with Retail Company now equipped with a stable and sustainable accounting system. Salora ERP ‘s intervention provided clarity and structure, allowing the company to regain confidence in its financial processes.
If your company is facing challenges with its financial processes or you’re looking for a reliable partner to ensure your accounting is on the right track, Salora ERP is here to help.
Whether you need a brief discovery call for an accounting health check or a comprehensive accounting integration solution, our team is ready to guide you to success. Reach out to us at [email protected] or call us at (+1) 720 254 1320 to schedule a conversation today. Let us help you achieve clarity and confidence in your financial operations.
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