A renowned India-based Retail Restaurant Chain, operating across India & parts of the US, approached Infinitude Consulting with a predicament of multiple issues. The Company being chiefly into Retail Restaurant Chain business earned its revenue through Initial Project Setup Consultation & Contract, Franchise fee and Supply of Ready-mix Food-items and Spices.
1. Company’s Accounting was not up to date: The Internal Full-time Accountant’s work was not properly defined and not subjected to periodical review by a qualified professional and hence was not timely, reliable & accurate.
2. Multiple Statutory Compliances were defaulted: The Company was being served with notices from various Tax Authorities. Identification of pending compliances, quantification of tax dues, and facilitation for clearance of the statutory compliances was the grave need of the moment.
3. There was a lack of Structural clarity: There was an immediate need for an internal restructuring of the Management, Shareholding, Business valuation etc. to rejuvenate the business structure and strategy of the Company.
4. There was a need for professional guidance and support: The Company was on the lookout for a dynamic team of professionals who would be proactive in their approach and work closely with the management to streamline its Accounting & Finance functions along with advice & support on Taxation & Compliance matters.
Lack of Reliability: A constant change in full-time accountants meant that the company was not consistent in keeping up with its Accounting records and the important compliance due dates. Further, the company was also lagging behind in processing the vendor payments in time, thereby losing its grip on negotiating with vendors for competitive pricing. Also, a lack of regular follow-up of Accounts Receivables of the company proved to be a burden on its cash flow. Added to this, a poor accuracy in data processing and incompleteness of financials was evidence of a lack of expertise among the past and existing accountants.
Periodic review of the Financials: The Company’s accountants being inefficient and inexperienced, lacked suitable month-end closing procedures, leading to opacity in financials. The management too was unable to conduct periodic meetings with their accounting team, to gain an accurate understanding of its financial trends and cash position.
Quality and integrity of financial status: The internal accounting team lacked the qualified touch of a Professional Accountant. A cataclysmic situation for a fast-growing business, to manage without proper accounting & finance inputs on a real-time basis.
Burden of Incorrect & irregular Statutory Compliances: Due to irregular & incorrect statutory compliances, the Company was facing the challenge of huge amounts of taxes slapped by various Revenue Authorities, alongside interest and penalty burdens.
Books Review & Restoration: Team Infinitude did a thorough review of books to make due and necessary changes in accounting entries & ledger reconciliations. Vendor & Customer Balances were also reconciled and restored over a period of time.
Standardization of Accounts: Accounts of the company were re-modelled to suit the industry & business specific presentational & reporting requirements. This also improved visibility of the Company’s specific finance-related issues, if any.
Tax Consultation & Representation before Revenue Authorities: Infinitude Consulting devised a suitable strategy for the Company to ensure early clearance of pending statutory compliances. Identification of pending compliances, Quantification of tax dues, and Facilitation for clearance was all a part of this endeavor.
Statutory Compliances support: With a custom designed package, Infinitude Consulting now becomes the Single-Point-Of-Contact for taking care of all its Statutory Compliance, while the in-house Accountant gets a need based regular hand-holding from Team Infinitude.
• With Team Infinitude’s regular review of Company’s Books of Account, the errors/ mistakes made by the In-house Accountant identified and rectified on fortnightly basis. The Company is able to project its Financials more accurately and also approach & avail Financial Assistance on time backed with readily available Financial Statements.
• The company now benefits from our well-established and documented accounting procedures with regular reviews and discussions on the financial statements. Updated and accurate financial information is also available at all requisite levels.
• There is now a turnaround in the quality of accounting, with supervision from our Qualified Professional Accountants, and an enhanced visibility with significant insights into the Company’s financial position.
• There is also a markedly significant reduction in the pending statutory compliances and tax litigations of the Company, at the end of the first year.
If you are interested in knowing more about how outsourcing to “Infinitude Consulting” can help your organization, please email us at sales@infinitudeconsulting.com or call us at 91-996-468-4376. We can also provide a cost-benefit analysis customized for your organization.