Outsourced Accounting Services: Adapt, Innovate & Shine With NR Doshi

Account Outsourcing: Backing up the company with the Backup

N R Doshi and Partners provide a wide range of outsourced accounting services and HR-related activities. The current case study deals with a trading company based in Dubai, UAE. The company trades raw materials required for computer printing and packaging. The company has four divisions divided as per the goods and items they trade.

The company used to purchase items from all over the European and Asian markets and sell them to customers in various Middle-East countries. Tasks related to all the four divisions are conducted on the same premises.

Challenge:

The company wanted us to conduct a combined accounting exercise for all four divisions. However, they also wanted us to prepare a division-wise profitability report. The client expected improvement in decision making, and he wanted us to make sure that accounting information is made available timely.

The company could not track the position of new facility amounts with various banks, due payments, and due receipts, which ultimately led to poor cash flow planning. As far as inventory management is concerned, there were a lot of non-moving items that were required to be identified, and necessary actions had to be taken.

As we discussed above, we conducted accounting for all four divisions. In the beginning, it was tough for us to identify the profit for individual divisions. Therefore, we looked for methodologies that could support us in efficiently creating the division-wise profit report. We also needed to make sure that the report delivered the information about the performance.

Challenge Accepted:

First, we concentrated on creating daily fund reports. Usually, accounting firms manage to create weekly and monthly reports, and we wanted to provide them with a better view of their funds and everyday expenditure.

As there are multiple banks, we prepared a comprehensive report daily to know the exact position of bank balances with details such as:

  • Cheques deposited in the banks that were not credited
  • Cheques paid but not cleared
  • Letter of credits opened with a bank
  • Along with credit letters matured for payments, we also added more attributes.

We even prepared reports delivering the information regarding the overdue amount receivables from all the four divisions. These reports showed the amount of the last receipt, too, as we were yet to receive the status of the pending payments. The sales personnel had not added their remarks related to the pending payments.

For this report, we undertook an all-inclusive study that included flow charts while designing roles & responsibility matrices.

Similarly, we also provided a graphical representation of sales for all four divisions during the period. The report contained the details of sales made by an individual salesman. This helped the company to learn about the efficiency of its workforce.

To identify the non-moving items, we created a stock aging report and took the necessary actions as per the report.

While creating the Division-Wise profitability Statement, we made sure that the everyday expenses get apportioned based upon the predefined ratios. We showed this along with the graphical presentation of different ratios to have a clear eye on the performance every month and also generated month-wise and division-wise comparisons.

We designed an incentive plan and paid employees as per their performance and target fulfillment. The incentive and commissions are calculated based on the total sales and amount of receivables collected.

To prepare daily reports, we created templates where the concerned person needs to enter the data. This made the data entry job easier and faster. This made every accounting task online, and therefore, we were able to submit monthly financial statements in the first week of every month.

Besides these, day-to-day activities such as payment to suppliers on due dates, repayment of availed bank finance on maturity dates, monitoring of bank balances, etc., were also performed.

A massive fire broke out on the company’s premises, and hence completed inventory and the company’s administrative office were destroyed due to fire. As a policy, we used to take up software data backup daily.

Since the Company’s data server got burnt due to fire, the company was clueless regarding how to submit the claim. When they consulted us, we informed them about our client’s data backup policy which enables them to retrieve their data back until the fire broke. 

Since the company outsourced its accounting to us, we were also in possession of its accounting documents in electronic forms, such as sales invoices, purchase invoices, bank statements, Journal vouchers, etc.

Submission of these electronic documents was considered primary evidence of the actual transactions of the Company during the Insurance Claim evaluation process. With the support of N R Doshi and Partners, the company was able to submit and obtain the claim of AED 2.5 million from an insurance company and hence was able to build the company back. We were there to help them as client welfare is our main motto.

Conclusion

We have gone through all the aspects of the business and learned about the business model. This made it possible for us to streamline the cash flow. The founder was pleased to learn about the detailed financial status of the company, and the daily report helped him a lot in decision-making.

They expressed gratitude for our support after the fire broke out at their office. Next, they used the backup as the legal proof of their business which was the most prominent tool to overcome the unfortunate event they endured.

N R Doshi & Partners will always be with their clients during tough times. Our aim is not just to earn profits but also to provide value-enriching services, with client satisfaction being our topmost priority.

N R Doshi’s Outsourced Accounting Services in Dubai & the UAE

As one of the top account Outsourcing Service providers in Dubai, we have served numerous companies situated in free zones in UAE; we are the best experts in the local market. These markets are composed of several industries (Retail, Hospitality, Jewelry, Real estate, infrastructure, etc.), and we have worked with them. If you are looking for outsourced accounting services in Dubai or the UAE, consider NR Doshi & Partners.

We have a keen knowledge of international accounting standards, and we follow them without compromise for all our account outsourcing services in UAE. We own solutions for all your accounting and bookkeeping services in Dubai and other emirates.

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