Customer: A food manufacturing company in Southern California.(0:08)
Manufacturer of agave syrup.(0:12)
Their finished goods can be sold directly to consumers or to other manufacturing businesses that use them further for making a different product. (0:17) So, they needed a bookkeeping solution to record the number of sales, goods manufactured daily under various categories, and for this, they availed bookkeeping services. (0:27)
Their Requirements Were(0:36) Bookkeeping, Tax preparation for Federal and State Tax Returns
Challenges they faced(0:45) • Accounting workload and less experienced staff in the office.(0:52) • The accounting books were structured on an accrual basis rather than GAAP basis.(1:05) • Over Expenditure (due to higher rates of in-house team and cost of training new employees)(1:14) • The client was facing difficulties in closing the transactions. The transactions were structured as stock transactions, which were complex.(1:25) • Difficulty preparing Federal and State Tax Returns during tax season. (1:40)
Solutions we provided • Cogneesol managed their entire work with an experienced team. • We helped in adjusting books from an accrual basis to GAAP basis. • The cost was reduced because of the elimination of training and infrastructure expense. • We completed financial due diligence efficiently and cleared discrepancies between client and inventory information. • We prepared their taxes for Federal and State Tax, so it became easy to file tax returns.
Impact on the Customer's business(1:48) • Staff and related expenses were cut-down significantly(1:49) • Tax Seasonal load was managed efficiently(1:54) • Better financial control ..