Outsourced Accounting Solutions

Inventory Reconciliation: Global Chemical Manufacturer

A large chemical manufacturer required assistance with the reconciliation of its inventory and accounts receivable modules in an ERP environment. The assignment required that Relevante’s professionals reconcile line by line all sales for a 5 month period ending December 2004.

Relevante’s professionals reviewed the entire sales data of the company to find numerous discrepancies between the physical stock and the consigned stock on various days of the review. This indicated severe control lapses within the organization which were immediately brought to the notice of the top management of the company.

Relevante’s professionals reconciled all related account balances and also drafted a procedure document for the reconciliations which has been adopted across the company.

Subsidiary Reporting: Global Semiconductor Manufacturer

A large chemical manufacturer required assistance with its Sarbanes Oxley Compliance efforts for all of their subsidiaries. The project required an inter-company reconciliation audit of all inter-company relationships including accounts such as Trade and Service transactions, Royalty, mark-up Expense/Income, Shares Expense and Loan Interest. The company required assistance of Relevante to implement an internal control structure and to put processes in place to monitor the compliance.

Each region of relationships was handled by a different professional and there were 265 reconciliations to be audited.

Over time the process was automated and enabled consultants to track and compare the data more effectively. Weekly reports were given to management to track our efficiency and progress of the project.

Account Reconcilation: Global Manufacturer

A global manufacturing concern needed help in reconciling its general ledger accounts during an SAP FI/CO Implementation project. Relevante consultants assisted the client with:

  • Validating all balances and transaction details migrated from legacy systems
  • Developing polices, procedures and documentation on the manner in which SAP FI/CO will handle all financial related transactions
  • Liaison between technical development teams and plant Controllers
Account Analysis: Global Engineering Components Manufacturer

An engineering components major required assistance with its account analysis, GL scrutiny & budget reporting functions.

A Relevante professional stepped in and assisted the client’s accounting team by performing a variety of accounting functions including:

  • Bank reconciliations
  • General ledger analysis
  • Ad hoc invoice research
  • Journal entries
  • Audit information requests
  • Conversion of budget information into a new account structure
  • Generating budget reports for management

The assistance provided by the Relevante professional allowed the senior accounting professionals of the company to focus on annual year end and tax package requirements.

Post Acquisition Integration: Financial Services Organisation

A high level team of financial services professionals, which included executives from JP Morgan, AT&T’s NCR division, and Deloitte & Touche, devised a growth by acquisition plan in the bank service provider market. The strategy included acquiring existing providers and integrating new technology to operate more efficiently as well as provide better products and services to its customers. Relevante was challenged to research and identify various acquisition candidates as well as assist in structuring and integrating the operations, post closing.

Relevante consultants created a Microsoft Access database of acquisition candidates which included detailed contact information, selection criteria and conversation tracking. Once an active candidate, Relevante managed the document coordination between buyer and seller and managed the due diligence process. Relevante executed the financial and administrative due diligence programs as well as assisting management in transaction structuring and acquisition financing.

Once an acquisition was complete, Relevante personnel were responsible for executing the financial and accounting integration. Relevante consolidated accounting systems onto the MAS200 platform and coordinated the billing automation from a mainframe billing system to MAS200. Relevante also assisted management in various finance related projects including software licensing pricing analysis, contract versus invoice revenue analysis, and restructuring (RIF) analysis.

Systems Implementation: Leading Manufacturing Conglomerate

A large chemical manufacturer required assistance with its Sarbanes Oxley Compliance efforts for all of their subsidiaries. The project required an inter-company reconciliation audit of all inter-company relationships including accounts such as Trade and Service transactions, Royalty, mark-up Expense/Income, Shares Expense and Loan Interest. The company required assistance of Relevante to implement an internal control structure and to put processes in place to monitor the compliance.

Each region of relationships was handled by a different professional and there were 265 reconciliations to be audited.

Over time the process was automated and enabled consultants to track and compare the data more effectively. Weekly reports were given to management to track our efficiency and progress of the project.

Account Reconcilation: Premier University

The Relevante Consultant was deployed to the Comptroller’s office of one of the renowned Universities in Pennsylvania to focus on Cash reconciliations. Within two weeks, more than 80% of the Bank and Cash related reconciliations and reports were being handled or prepared by the Relevante Consultant including researching wires and resolving $2.6m in outstanding checks, properly identified by cost center. Other reports required special access which the institution gave only to permanent staff. By the end of September, the client was back on track to meeting scheduled deadlines for Bank and Cash reconciliations / Reports.

The client was quite impressed with the proficiency with which the Relevante Consultant had worked on Bank and Cash reconciliations, analysis and reports. The scope of the Relevante Consultant’s work was broadened to include fixed asset accounting and reconciliation. By the end of mid-October, 2006 the Fixed asset Inventory reports for July, August and September had been completed to reflect all acquisitions, additions, transfers and disposals for the current fiscal year. All reconciliations had been completed with no outstanding differences; prepared all necessary journal entries needed to reclass expense items or include capital expenditure items; properly identified and recorded all disposals that had occurred during the year. During the last two weeks in October 2006, Relevante Consultants helped the client to re-organize the records.

Strategic Accounting & Financial Support: Leading Not-for-Profit Professional Association

A large not-for-profit professional association was in need of financial leadership and strategic financial support. The company required strategic accounting and consulting services to support its finance and accounting department.

Relevante’s professionals stepped in and assisted the client’s finance & accounting team by performing a variety of functions including:

  • Interim CFO
  • Interim Accounting Personnel
  • Implementing monthly accounting close process
  • Upgrading Great Plains Accounting System
  • Implementing Bottom Up Budget Process
  • Consulted to establish an Audit Committee for the Board of Directors
  • Redesigning and implementing the chart of accounts and cost center structure
  • Providing finance and accounting education to the board, management and the accounting and finance teams
  • Re-negotiating the banking lines and banking relationships

Relevante’s team also did a critical assessment of the existing accounting team and made recommendations for the appropriate level and competencies of personnel. In addition, Relevante has been the internal point person liaison with the external audit firm for the annual external audit and filing of the tax returns. Relevante’s professionals were also extensively involved in the introducing a new financial analysis discipline and process which assisted the management in pricing decision-making.

With Relevante’s guidance, the client’s profits and cash flows improved, turning a sizable loss into a significant positive residual.

Account Reconciliation-Leading Semiconductor Equipment Supplier

The accounting department of a leading supplier of semiconductor assembly equipments required assistance with reconciling over 150 accounts. The company’s accounting staff noted differences, exceptions and charge-offs to various accounts but they were not often followed up by reconciliation. This led to a large number of reconciliations being pending for a long time.

The company requested Relevante to assist with the reconciliation efforts and propose new formats for the reconciliations.

Relevante’s consultant began the assignment by creating templates for certain types of reconciliations such as Prepaid and Accruals in the appropriate formats for both corporate accounts and Test accounts. The consultant also proposed creating SOPs (Standard Operating Procedures) in template format to attach to each reconciliation describing each account, its purpose, data source, user, person approving, etc. for all corporate reconciliations.

Our consultant ensured that all reconciliations were up to date in quick time for the quarterly audit. The consultant also followed up with discussions with the Finance Director to set in place a process for a timely & orderly reconciliation process in future.

Divestiture – Financial Reporting: Fortune 500 Chemicals Company

A fortune 500 chemicals company was selling a $300 million segment of its business to a European company and, as part of the sale, had agreed to perform interim financial reporting and accounting services for the buyer during the extended transition period. The buyer was planning to port all financial and operational data for the purchased business segment to its own SAP system at the end of the four month transitions period and all required data would have to be “carved out” from the selling company’s system. The selling company had never performed these types of services before and realized that the task would be very time consuming with many unforeseen issues. It was decided that experienced outside financial services support would be necessary to fulfill the agreement.

A Relevante professional with this type of divestiture and “carve-out” experience was called in to help. Expectations included coordinating and monitoring the efforts of a large team of internal client accounting professionals to ensure that day to day accounting transactions continued to be recorded properly for the segment. Relevante professional services also included preparation and issuance of monthly consolidated financial statements for the segment on schedule and as required by the buyer. Day to day accounting and analysis was performed via the client’s SAP R/3 enterprise accounting system. Monthly consolidated financial reporting required utilization of Hyperion Enterprise. Throughout the transition period, additional unusual issues were addressed, investigated, and resolved to assure a smooth transition for the buyer.

At the end of the transition period, the buyer experienced a smooth transition and successfully ported all required information to its own SAP system. All significant issues were resolved timely and to the satisfaction of both the buyer and selling company.

Corporate Accounting Assistant Manager Backfill- Major Dairy Products Chain

A Large Financial Services Company required assistance with converting new client’s portfolios into the company’s internal systems. The assignment required Relevante’s professional to translate the incoming assets into the company’s internal system under tight timelines.

Relevante’s professional’s time was distinguished by the high level of activity. Assets totaling more than $100 million were moved into the client’s system. Attention to detail, timeliness and establishing good lines of internal communication were critical. The professional’s responsibilities were expanded to auditing trades and cash disbursements. During this time, the asset conversion process was under review for restructuring and automation. The Relevante professional provided information in the analysis phase of the project as to volume and variety of the asset activity. They also were consulted as an information source for the current process.

The Relevante professional was able to seamlessly fit into the organization and assume the responsibilities of the position.