Nature of Business - The customer is the CFO for an E-COMMERCE Industries company that has sold fancy jewellery & accessories on e-commerce sites such as Amazon for over 2 years.
Annual Turnover - 0.5 to 1 million
The identity of our client cannot be disclosed for privacy reasons, so we will refer to it as CFO.
Challenges from customer point of view - The client ships its products online throughout the US and the world. It has trouble maintaining customer data, performing revenue reconciliation, managing inventory and managing sales tax. Each state in the united states has a different sales tax rate, and filing the sales tax can be a tedious task when you have customers in several locations.
To ensure sustainable growth and sound business health, any organization needs good financial planning and management in today's competitive environment. We streamline client financial management processes using our back-office services and integrate sales, accounts, and execution to improve enterprise-wide performance. Ensure that you keep track of your financial collections accurately and efficiently.
Despite hiring accountants, CFO has learned they lack proper accounting and sales tax knowledge which leads to CFO having to rework all the time and, therefore, not being able to do higher-level jobs for which he was hired. Consequently, he has decided to outsource the accounting work. CFO contacted IBN for back-office services; we informed him that we assisted with CFO services while chatting with our sales representative. Under that, we can provide Forecasting and Projections reports with the help of ProfitCent analytical tools. At the start, he would like to focus on accounting back-office services.
In preparation for the actual process, there was a significant challenge related to the accounting database for the CFO's clients and customers and the inventory database. IBN has suggested the CFO take the fiscal count of inventory by looking at the inventory list. For this reason, they have been asked not to sell any product for one week. The CFO has shared the Client Customer Database, Merchant site access, and correct inventory count during this one-week process.
IBN created a new accounting database with the provided data to provide daily accounting services for CFO. Since the client sells products online, daily sales information is gathered by IBN directly from the site. Because the CFO's staff involvement is reduced, he has decided to shift staff to client building and customer relationships, which are more vital to business growth.
As a result, IBN has started processing sales invoices with the correct sales tax rate in the accounting system, resulting in incorrect sales tax liability calculation and quick tax reconciliation on a quarterly and an annual basis. Reconciliation of revenue is performed daily, contributing to healthy cash flow management and on-time payments to suppliers. It helps to build healthy relationships with them and increase client creditability. It resulted in a 20% reduction in overhead, and it freed the CFO to take on higher-level tasks and relieve them from daily accounting responsibilities.
Six months after the program's start, IBN has produced a higher level of forecast reports comparing real-time data to the forecasts. The CFO was very impressed with the Assistance CFO Service and went for it for his decision-making and developing marketing strategies.
CFO is satisfied with IBN Assistance CFO Services because all reports were being shared timely and with high accuracy. As "Proficient" has good features such as Narrative reports and Real-Time Industrial Data Comparison, it reduces staff time devoted to analyzing and compiling data and drafting keynotes. This increased CFO profitability and lowered data capturing costs, and helped them to get the output in a short period.
The client is pleased, and IBN has continued to serve them.