OUR CLIENT EXPERIENCES: BANK RECONCILIATION NOT DONE

OUR CLIENT EXPERIENCES: BANK RECONCILIATION NOT DONE
July 1, 2016 accounthubng

 

A major importer of wines and spirits, our client, has a policy of not collecting cash at all outlets. The business sells in wholesale to distributors around Nigeria who must make a bank deposit and produce evidence to collect their stock at any outlet. The business had run this system for over 5 years. The business kept growing. From 2 outlets to 6. Daily number of bank lodgments averaged 22. Total sales was reported daily. There was no automated accounting neither was there any bank reconciliation done. Recently, the business owner decided to automate the accounting; his reason, this dollar wahala causes him to change selling prices too often. It would be hard to send a list of changes each day to all outlets. If he could just make the changes in a cloud accounting system, the next invoice generated at any outlet would bear the new price. Accountinghub handled the transition from a manual accounting system to an automated one. It was the all-simple SageOne; costing just 4k naira monthly. Then, we found a bubble. The seemingly flawless system which had run for over 5 years had lost the business 3.72m in the 4 months period from January 2016 to April 2016.

WHAT WENT WRONG?


Some distributors of the business had become fraudulent. The realized that if only they could produce a bank deposit slip with a stamp of it, they could receive goods. That was easy for them to accomplish and they enjoyed this fraud for several periods unnoticed. Accountinghub had discovered this through a simple bank reconciliation system on SageOne, the accounting system.

The system tries to match Invoices against inflows into the bank. We found several Invoices without corresponding bank inflows but having deposit slips submitted by the distributors.

 

WANT TO KNOW MORE ABOUT SAGEONE AUTOMATED ACCOUNTING SYESTEM? CLICK HERE FREE CONSULATION

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*