Assessment:
During Assessment, we identified multiple issues and areas of improvement, some of them are listed below:
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They have not reconciled their books for over 18 months
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They had multiple transactions, missing transactions, bank accounts that were not included and overall no standard transaction management process
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They were using application-recommended standard Chart of Accounts (COA) and continuously kept adding new accounts without any governance resulting in hundreds of accounts with multiple duplicates. For example, they had 4 different accounts for Rent:
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Expense: Rent
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Expense: Lease
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Expense: Office Rental
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Liability: Rent
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They did not set up parent-child Account strings so none of the Accounts rolled up
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Their data was not clean with information missing from vendor database, multiple client and vendor entries.
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They did not have any expense tracking process and application that would minimize human error
CAS Solutions:
Process Improvement,
Financial Data Clean up and Chart of Account (COA) Optimization
Boston Based SaaS Start-up
BraunWeiss Approach:
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Implement standard data practices across the board
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Implement standard Accounting practices complying with GAAP
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Review current COA and merge duplicate accounts, inactivate unused/non-applicable accounts
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Build Parent-Child Account relationship to assure
Account roll up
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Build reporting structure and hierarchy
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Reconcile all accounts
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Implement expense tracking application and
approval process
BraunWeiss Solution Implementation:
Financial Data Management:
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BraunWeiss cleaned up all databases and assured the information is accurate and unique accross the board
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Identified and resolved issues that was causing multiple data entries
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Provided training on best practices in data management
Reconciliation:
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Set up all bank and credit card accounts
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Resolve all synch issues
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Uploaded all historical bank and credit card transactions
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Deleted multiple transactions
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Reconciled historical cash on a monthly basis (debit/credit level)
Chart of Accounts:
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Build a new COA structure with parent-child relationship
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Merge duplicate accounts in QBO and inactivate unused accounts
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Create new accounts as needed
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Implement Account numbering structure
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Map all historical transactions to new COA
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Set up GAAP processes to assure compliance
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Provide financial statements for CPA tax filings
Expense Management:
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Implement Cloud based expense management application
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Set up all users
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Integrate with QBO and assure only approved expense categories are available
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Set up approval work stream
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Provide training for all users
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Map all historical expense payments to correct categories and employees
