Nature of Activities: Property Renting

Problems:

Accounts :

The client was not having details of how much rent was due from his customers. The collection of rent was slow. Also, check bouncing details were not available, which resulted in losing a lot of money. Neither the client had costing details as to how much expense was incurred on particular property nor was he able to know how much he was earning from a particular property. Income and Expenses statements were not available on monthly basis to analyze his profitability. Similarly his financial status was not known to him. He always had these questions in his mind:
How much did he owe to vendors?
How much customer owes to him?

Payroll:

Lot of penalties paid due to wrong paying of taxes and for non/delayed filing of returns.

Solution by SKB Accounting services:

Accounts:
We developed the accounting system as per his requirement. The client provided us the information by 5th to 8th of every month and we provided him the updated accounts by 10th. We maintained Accounts receivable reports for him. Now he has property-wise details of rent due from his customers. For bounced checks, customers are charged, which was not traced earlier hence was losing money. Now even the bounced check charges are recovered from the customers.

Property-wise costing statements are made for analyzing the property-wise profitability. Accounts payable reports can be generated to know how much he owes to his vendors with due dates of payment so that late payment interest and penalties can be avoided.

Payroll:

The client provides us the working hours for all the employees and SKB Accounting provides them the pay stub, payroll summary and total cost summary. We remind clients for payment of taxes and for filing of returns. Hence, neither any delay in payment of taxes nor in filing of returns thus bringing down the penalties to ZERO.

Result:

The client saves a lot of money and time.

Client has:

Up-to-date list of Account Receivables
Up-to-date list of Accounts Payable
Up-to-date Profitability statements and other financial statements
Correct and timely payment of Payroll and Taxes
Timely filing of Payroll Returns
No penalties

Nature of Activities: Personal accounts and Investment Business

Problem:

The client’s accounts were not maintained properly for two years. Bank accounts were not reconciled. There was no track of credit card statements. Information was not available for the personal expenses for claiming itemized deduction in his income tax return. He was not able to provide information to CPA for preparing his tax returns. In turn, he had to pay penalties for late filing of return and for late payment of taxes. The client neither knew his financial status nor had the current position of his portfolios.

Solution by SKB Accounting services:

We obtained all the bank statements and credit card statements and entered them properly. We reconciled them to bring the accounts to the current position. We had to do a lot of cleaning up in the accounts. We prepared the accounts and categorized his income and expenses into business and personal. Portfolio records were maintained for him showing the cost and the current market values.

Result:

The client has up-to-date information

• Financial Status
  
• Bank Accounts reconciled up-to-date
• Credit Card Statement reconciled
• Portfolio Statements

Client has

up-to-date itemized deduction details for personal expenses
up-to-date financial statements for Business
saved penalties