The Problem
Our client is a reputable and highly professional logistic, shipping, clearing and forwarding company that provides full logistic support for airfreight, seafreight, warehousing, storage and many more logistic services across the whole Niger Delta and all other states in Nigeria recently underwent a significant reorganization, reducing its workforce from 30 to 16 employees. During this transition, the Chief Accountant abruptly left the organization, resulting in a lack of adequate financial oversight. Compounding these challenges were technical difficulties encountered during the migration of historical financial data into newly implemented SAGE One Accounting software. These issues have led to inefficiencies in financial record-keeping, accounts receivable management, and compliance with International Financial Reporting Standards (IFRS). To address these challenges, the firm required a robust solution, including:- Accurate migration of financial data to SAGE One Accounting.
- Implementation of internal control procedures for checks and balances.
- Review and enhancement of accounts receivable management processes
- Recruitment of a Chief Accountant to stabilize the finance team.
The Solution: How We Helped
Stransact employed a systematic approach to address the firm’s needs, leveraging expertise in financial management, data migration, and internal controls. 1. Data Migration to SAGE One Accounting We initiated the migration process by extracting historical data from the firm’s previous accounting system, Sage 50 (formerly Peachtree). This involved mapping entity accounts (e.g., banks, customers, vendors, and tax categories) and processing the source data for seamless integration into SAGE One Accounting. To ensure accuracy, we reviewed and reconciled imported data, such as trial balances, aged receivables, and payables. Key steps included:- Updating the Chart of Accounts to align with IFRS.
- Analyzing imported records for discrepancies.
- Recommending adjustments and journals to maintain data integrity.
- Reviewing credit policies and evaluating customers’ creditworthiness.
- Circularizing customers to confirm balances.
- Recommending automated invoice reminders and proactive monitoring.
- Supervised financial reporting and operational oversight.
- Regular collaboration with the firm’s leadership to address gaps.
- Prompt replacement of the loaned staff if performance expectations were not met.
- Delegated Levels of Authority (DLA).
- Payment authorization and vouching.
- Sourcing and screening candidates.
- Conducting reference checks and interviews.
- Managing onboarding to ensure a smooth transition.
The Result
Through a collaborative approach, Stransact delivered a comprehensive solution, achieving measurable improvements:- Enhanced Financial Accuracy: Successful migration of historical data and implementation of IFRS-compliant processes improved financial reporting accuracy.
- Streamlined Processes: Updated internal controls and automated reminders reduced accounts receivable aging and improved operational efficiency.
- Staff Stability: The provision of a loaned CFO and the recruitment of a Chief Accountant stabilized the firm’s finance team.
- Cost Savings: By identifying inefficiencies and optimizing processes, achieved significant cost savings.
