Corporate Restructure and an Accounting Mess
The subsidiary of a listed company restructured its operations, with some of its staff redeployed to other subsidiaries. The low morale environment resulted in a high turnover of its accounting personnel, which in turn led to an accounting mess.
Accounts Receivable & Payable, inventory and reported GST did not tally with the control accounts; monthly bank reconciliation was not done properly, with lots of unreconciled items. Adding to the mess was a backlog of accounts and an urgent need to meet the audit deadline.
AccountServe Engaged to Clear Accounting Mess
AccountServe performed the following:
- Tracing of all differences & reconciliation of all items.
- Review and rectification of accounting & GST errors with preparation of the necessary supporting documents
- Reconciliation of all bank and major suppliers' accounts
- Review of inventory costing
- Review of system flow and recommendation on improvements
The company was able to start afresh with an updated and neater set of accounts.