The Problem

Outdated financials
Inaccurate payroll allocations and erroneous liability balances, with an inefficient payroll reconciliation process
No visibility or cohesion between financial teams and internal operational team
Inaccurate sales and income account balances; erroneous clearing account balances
Inefficient AR process & erroneous AR balance
Improper reconciliation of cash accounts
Inaccurate employee loan balances

Encurio’s Strategy

Catch up on months of past transactions and closes, then deliver accurate financial reports on a regular monthly basis
Thoroughly review the past two years of payroll and clean up old, inaccurate transactions
Improve payroll reconciliation process to be more efficient during month end close and highlight discrepancies
Consolidate the transmission of information across teams and add key contacts to financial report distribution
Reconcile income accounts and clearing accounts to sales reports for more accurate financial reports
Review AR process and train internal AR clerk to post receipts and deposits in a more efficient and accurate method
Reconcile cash accounts to ensure all funds were deposited into bank accounts from third party processors
Review and reconcile employee loan balances to ensure funds were paid back to zero, not overpaid or underpaid, and reported accurately on the balance sheet

Accounting is now up-to-date, with financial reports being delivered monthly to the client and their financial team. They are now able to evaluate their financial performance with current information. We also meet with the client and their financial team on a regular recurring basis to review financials as well as discuss upcoming needs.

Payroll reporting is now more accurate and concise. Discrepancies and uncashed checks are easily discoverable, allowing the client to act promptly. Employee loan balances are now accurate and setup correctly to repay the client quickly and for the correct amounts borrowed.

The transmission of accounting and financial metrics are shared across the client’s financial teams, allowing for each party to work together and give informed advice as a unit instead of separate parties.

Income and clearing accounts were reconciled to date, resulting in the discovery of $300k+ of funds that were never deposited into the client’s operating bank account. Once the funds were discovered, the client was able to transfer into an interest bearing account and utilize the funds for upcoming capital expenditures, avoiding the immediate need for short term lending.

A strong relationship between Encurio and the client’s AR clerk, so that NSFs and failed payments can be addressed real time, avoiding repayment issues due to software restrictions. Encurio also worked to establish a clearer and more efficient payment receipt and deposit process, to reduce the time needed to complete each week. Finally, the AR report was cleaned up and erroneous payment applications were corrected ensuring an accurate balance

Since the financial reports were so heavily and positively affected by the different areas of cleanup and reconciliation, the client is in a much stronger position for lending options as they continue to look for a larger facility and work to grow their business.