Redesigning Accounting and Finance Systems to Match Investor’s Expectations.

Background

A manufacturing Company for state-of-the-art ceramic cutlery items was on the verge of taking off with the help of a significant investment from an NGO with a Socio-Economic objective. The investor was particular about having clarity on the Usage, Management & Repayment of the invested amount, which required redesigning and streamlining the Accounting & Finance systems of the Company.

Needs Identified

As required by the Investment terms, the Company was mandated to have a dedicated Accounting team (Unlike its erstwhile system of once-in-a-year Accounting) to ensure appropriate Accounting on a regular basis.
As part of the requirement of the repayment terms stipulated by the Investor, the Company was supposed to pay a fixed sum of interest on the additional COVID-19 loan extended by the Investor on a month-on-month basis.
So far, only one of the promoters/ directors had been involved with overseeing the regular transactions of the Company, including keeping track of the outstanding balances of its Vendors & Customers. This was taking majority of Promoter/ Director’s time.
The Company was in need of accurate preparation of its Monthly Profit & Loss and Cash Flow Statements for submission to the Investor; and also, to get an insight into its financial position with real-time access to its Books of Accounts.

Challenges Recognized

Working in different Time zones: The Finance Director being resident in Canada and the manufacturing unit being situated in Mysuru, India, there was a significant challenge identified with regards to Coordination of data, Discussion and Reporting.
Accounting Challenges: The Company’s products were sold both on Online Platforms, as well as, Direct-to-Customer basis. The real-time accounting & periodical reconciliation of sales made through the Online Platform was another identified challenge.
Real-time Access to Books of Account: The Finance Director being in a different continent & time-zone, wanted to have real-time access to the Company’s Books of Accounts.
Requirement of Key Performance Indicators and Monthly Financial Status: The Directors wanted to be aware of the Key Performance Indicators (KPIs) and wanted to review the important periodical, Financial & Accounting Reports for making timely business decisions

Solutions Provided & Results achieved

Robust Cloud-based Accounting Software: Based on the Initial Assessment, the Infinitude team advised the Board to go in for Quick Books Online, with cloud-based accounting support, for its Accounting requirements and further facilitated the move by installing & configuring it, for real-time Accounting & Reporting access.
Accounting & Reporting Systems in place: With its long-term experience & expertise, the Infinitude Team designed and implemented an efficient and pro-active Accounting & Reporting system for the Company to ensure easy Data Flow & Management Systems, ensuring smoother harmonization with its stakeholders expectations.
Design & Implementation of Monthly Information Systems: Based on the initial assessment and the requirement of the Company and its investors, the Infinitude Team designed and implemented a periodical Monthly Information System. This has resulted in efficient generation and reporting of Financial narratives on a monthly basis, timely assessment of KPIs, and opportune business decisions.
Fulfillment of Investor Expectations: The implementation of a proper Monthly Information System, as per the Requirement Analysis with predefined timelines, enabled the Company to fulfill the investor’s expectations of regular turnover-based pay-outs and timely updates on the Company’s performance.