Background
In 2022, a B2B furniture wholesaler based in the UK acquired a going concern, significantly expanding their business operations. By late 2023, the company realised the need for a robust accounting system to manage their financial transactions and reporting. They approached us to set up new accounting software, reconcile a backlog of transactions, and ensure compliance with VAT returns.
Challenge
The scope of the project was substantial. The company had seven different currency bank accounts and over 6,000 bank transactions that needed reconciliation and accurate coding. The previous bookkeeping system was inadequate, resulting in delayed VAT returns and limited financial visibility. This posed a significant challenge as accurate financial records are crucial for making informed business decisions.
Approach
Our approach was systematic and thorough, focusing on the following key areas:
1. Software Implementation: We selected and set up advanced accounting software tailored to the client’s needs, ensuring it could handle multi-currency transactions and provide comprehensive financial reporting.
2. Transaction Reconciliation: With over 6,000 bank transactions to reconcile, we developed a detailed plan to categorise and code each transaction correctly. This involved closely working with the client to understand the nature of their transactions and ensuring accuracy in financial records.
3. VAT Compliance: We prioritised filing all outstanding VAT returns. This involved reviewing past transactions, ensuring all VATable transactions were correctly recorded, and submitting the returns promptly to avoid any penalties.
4. Financial Reporting: Once the transactions were reconciled and VAT returns filed, we prepared the accounts for the client’s accountants. This ensured a smooth handover and enabled the preparation of the year-end accounts.
Outcome
The results were transformative for the client:
- Up-to-date Bookkeeping: All bookkeeping tasks were brought up to date, providing a solid foundation for ongoing financial management.
- VAT Compliance: VAT returns were filed and up to date, ensuring compliance with HMRC regulations.
- Enhanced Financial Visibility: The client now has clear visibility into their financial performance, enabling informed business decisions.
- Streamlined Processes: The new accounting software streamlined financial processes, making future bookkeeping more efficient and less error-prone.
Conclusion
This case study highlights the importance of accurate and up-to-date bookkeeping for business growth and compliance. By setting up a robust accounting system and reconciling a significant volume of transactions, we helped the B2B furniture wholesaler gain control over their finances. The client can now make strategic decisions based on reliable financial data, positioning them for continued success in their industry.
If you are interested in finding out how we can help your business, please get in touch.