Actual Case Studies

ADMINISTRATION... FRIEND OR FOE

Are you getting timely and accurate information from your administration department? Is administration part of the decision-making team? Or is administration simply a necessary evil?

WE CAN MAKE ADMINISTRATION A FRIEND!

We can provide the expertise, the software, and the hardware necessary to take advantage of today’s technology. We can help you improve your bottom line by helping you increase the efficiency of your operations, by increasing your inventory ratios, and by providing a global presence for both your purchasing and sales activities.

We are not just another computer consulting company. Please review the cases below. In all the cases cited, not only did we provide the computer systems as necessary, but also we actually did much of the data entry, reconciliation, balancing, and implementation required. We can put experienced people on a client's site to work side-by-side with the administrative staff to solve problems and implement new systems. We offer on the job training for new and old employees as required to insure smooth operations.

If these situations sound all too familiar, contact us to discuss how we can achieve the results you need to insure good administrative controls. Let us show you how accounting can be a partner in managing the business. Let us help get the maximum return on the dollars invested in administration.

CASE 1

Problems:
Administrative computer system was partially installed but subsidiary ledgers were never balanced to the general ledger. In spite of extensive overtime expense they were unable to prepare profit & loss statements or a balance sheet. Accounting continued to use manual system which was not reconciled to the computer billing system. No meaningful data concerning operations was available from accounting.

Solutions:
Reinstalled computer system. Reentered six months of data, balancing and reporting results for each month as completed. Implemented additional systems, including inventory control, to further automate administrative functions. Prepared financial statements for further review of CPA.

Results:
Completely balanced system available in less than six weeks. Smooth control of daily functions was realized. Financial statements are now available within three working days of period end. Administrative expenses have been reduced.

CASE 2

Problems:
No method of costing invoices or maintaining perpetual inventory. No monthly profit and loss statements. Subsidiary ledgers not balanced to the general ledger. Unrecognized bank statements. Inaccurate manual control of maintenance agreements leading to loss of revenue. Inaccurate and incomplete control of serial numbers. Duplication of manual systems with no reconciliations. No provision for unearned income on MA's.

Solutions:
Upgrade Accounts Payable, Accounts Receivable and General Ledger Systems. Reconcile and balance subsidiary ledgers to general ledger. Install and implement serialized inventory control system. Reconcile inventory value with general ledger. Install automated bank reconciliation system. Reconcile bank statements. Implement automated maintenance agreements billing and accrual system. Install dispatching system which uses the MA file to verify maintenance status of machines.

Results:
Bank statements are now reconciled when received in less than one hour. Profit & loss statements are available within three working days of period ending. Interim P & L's available on demand. Complete control and tracking of serialized products. Accurate invoice costing and inventory counts. Timely warranty and maintenance agreement expiration reporting. Increased service billings and maintenance agreement renewal revenue. Automatic posting of unearned maintenance agreement income and monthly earnings accruals. Decreased administrative personnel costs.

CASE 3

Problems:
No control of accounts payable. Unable to segregate and report on subsidiary companies. No tax filings for several months. No central knowledge or control of accounts receivables and billing data. No profit & loss statements for last twelve months of operation. Disorganized and widely dispersed files. Failure to utilize installed computer system. Constant bank overdrafts.

Solutions:
Organize and implement a centralized filing system. Reconstruct current data using the computer system. Reconstruct data for past twelve months using check books and computer. Design and implement profit & loss statements. Contact all vendors to verify and reconcile accounts payable. Install new management system to permit centralized control with subsidiary reporting capabilities. Install automated check reconciliation system with up to the minute cash position reporting. Determine data for and file back tax returns.

Results:
Accurate and reconciled subsidiary ledgers. Elimination of overdrafts. Timely subsidiary company and consolidated company profit & loss statements. Reduced administrative costs.