Essential training with accountancy software
A client was paying a substantial amount for accounting software each year, but as a small business of long standing, their bookkeeper had developed her own systems and was only using the software to raise sales invoices, preferring to rely on manual records and excel spreadsheets for everything else. This became an issue when she became ill and there was a sudden loss of essential records.
The business owner needed help from Ella in two ways; finding the information which should have been recorded on the system previously; and training for the owner and the replacement bookkeeper in how to use the accounting software correctly. Ella’s first task was to find and piece together all the previous year’s activity and to rebuild it on the software, starting with the sales invoices, adding any purchases found and then posting the bank data. It could then be used to create the year end records for filing. Systems then needed to be put in place with the business owner and bookkeeper assigning tasks and responsibilities to each of them. Ella taught them how to use the software to its full capacity and to create useful and meaningful reports. Within the space of three weeks they were up and running and just calling on her for specific issues or questions as and when required.
Inventory software issues
A client who was part of a multinational group had inventory imported from Germany to sell in the UK on a regular basis. However, the client was having issues with stock control and monitoring profitability, and needed to find out what systems were not performing correctly.
Ella was tasked with auditing a mid-year stock count and inventory report, following the systems from delivery to sales dispatch. This was a two-day inventory count and the work involved meant that she would have to scrutinize both the client’s stock and accounting software, to see how they interacted and how the stream of information flowed between them.
This was completed within the time given and the findings given to the client in the form of a formal report. It appeared that one of the main issues was in the returned items from customers. When an item was returned from the end customer, the inventory system was not set up to bring it back into the inventory list. Once the client received the report and was made aware of the issues, they were able to update their systems to account for the full inventory including returns, and to make sure that these and other errors were less likely to occur in the future.
A client acquired a company in a difficult market and despite their best efforts the company went into liquidation and the client found that much of the required accounting information was missing. The evidence they had, pointed to a £20,000 debt.
Ella was bought in to investigate the accounts and try to resolve the issues with the liquidator. So, she reviewed and rebuilt the accounts using invoices, bank statements, receipts and wage information; addressed debt allegations with newly updated data; presented the arguments to the liquidator disputing the debt and confirmed that the debt claim was in fact inaccurate. In the end, she discovered that the client did not owe £20,000 but was actually owed £5,000!
Inventory software had fundamental issues with its reporting capabilities
A firm struggled to deliver accurate accounting data on time and had issues with obtaining accurate reports from their stock and accounting software.
Ella’s task was to look at the records and find out why there were discrepancies in the accounting data at the year end. The company used a bespoke software system supplied by a third party for online sales inventory and deliveries. Ella’s analysis of the inventory software found fundamental issues with its reporting capabilities. These issues were only found after two and three-way testing, using real world scenarios and comparing with the expected results.
Once the issues were reported to the client, with the results of the multidirectional testing, they were able to go back to the supplier who updated the software and rectified the problem. The company owners were in the process of selling the company and they were able to use this information, in addition with other due diligence work Ella provided, to successfully sell their business at a satisfactory rate.