Case Study - Finance & Accounting

Business Situation/Challenge
The client, a dominant player in the Australian fuels distribution sector, was formed via merger of several regional distribution businesses. As with many mergers, key accounting personnel from the predecessor companies were not retained and therefore, all of their knowledge was lost in the process. Further, the new junior accounting staff members hired were not properly trained on the business and it’s very complex and disjointed systems and they were not provided proper direction and procedures to follow as none existed.

As a result of the merger, a new leadership team was formed and this leadership team was keen to realize post-merger efficiencies and cost savings and create a world-class Accounting Services Division.

How We Helped
We partnered with the client and performed a full-scale review and analysis of all balance sheet accounts and both manual and automated processes with a focus on the following areas:

Cash
Accounts Receivable
Other Receivables
Fixed Assets
Accounts Payable
Indirect Taxes

During this initial phase of the project, we focused on the proper reconciliation of all balance sheet accounts. We identified and researched reconciling items and proposed adjusting entries to the appropriate client personnel. We created a standard “reconciliation template”, documented the nature of the account and reconciliation requirements. We then transitioned our knowledge and trained the appointed staff on proper reconciliation of the accounts. The above very detailed work enabled us to identify process inefficiencies, areas for improvement, and internal control gaps.

During the second phase of the project, we developed, documented, and implemented standardize “best” processes with a focus on the areas of Accounts Payable, Indirect Taxes (both Payroll and FBT), Fixed Assets. We continue to perform business process and system improvement focused projects for the client as they position the business for future growth through acquisition.

Results
With our help, the Company was able to realize the anticipated merger-related synergies. Through the implementation of a more effective and efficient structure for the Finance and Accounting Services Functions and streamlined business processes, they successfully reduced “back office” costs. The Company is well positioned for future growth.

Why Resources Global?
Through a long-standing global relationship with a related party, the client understood our capabilities in the areas of complex account reconciliations, business process reengineering and internal controls. We provided to them a dedicated Client Service Director and a team of experienced, yet hands-on professionals with accounting, finance, business process and internal control experience. We communicated status in verbal and written form on very regular basis and ensured that all issues were promptly and effectively resolved. We added value by forging solid relationships with all project stakeholders, creating efficient and well-controlled processes, and transferring knowledge through one-on-one training and documentation.