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Client Overview KMK: A Strategic Partner for US-Based Wireless companies

Budget Wireless Group (“BG”), a preferred retailer of Cricket Wireless (prominent wireless carrier in
United States), has over 300 retail locations across United States. BG was facing challenges to
manage their accounting functions including accounts payable, accounts receivable, general ledger
maintenance, bank reconciliations, management reporting, periodic financial statements, cashflow
management as well as many of the human resource management functions.

Client’s Challenges

BG was struggling to create their backend internal control systems since they had more than 300 points of sales and equivalent number of bank accounts to reconcile.

BG did not have a robust accounting department and therefore they did not have a visibility in the financial results of their operations at retail location level.

BG was struggling to make major decisions without real-time financial data. BG was looking to streamline their accounts receivable, accounts payable and inventory management processes

BG was also looking for HR support to process payroll since they operated in more than 8 states including California.

BG received commissions from the carrier for every line activation and/or upgrade they perform based on the rate plan and plan features they sold. BG needed a process to reconcile this commission to ensure they accurately received commissions they earned and identify any disputes for non-paid and short-paid commissions.

BG was looking for a team of technically strong accountants who can handle their requirements comprehensively.

Our Solution

BG engaged KMK for 22 FTEs (including 8 Chartered Accountants, 10 Senior Accountants and 4 Data Analysts with advanced excel skills) to manage their comprehensive requirements and to work with their onshore accounting/operations team, Controller and CFO. KMK streamlined the communication channels with BG team by using Microsoft Teams. KMK set up the team hours in such a way that it would provide at least 4 to 5 hours of collaboration time with the onshore team and depending upon where onshore team member is located while working remotely. KMK initially reviewed the entire business workflow of BG and identified the key areas which were the bottlenecks in closing the loop all the way to financial statements preparation on a timely basis. KMK used RPA tool to create a BOT to automate the bank statements downloads for more than 300 bank accounts from Wells Fargo bank portal resulting into savings of more than 4 hours per day of critical time to reconcile the bank deposits with point-of-sale reports. This was an extremely tedious but a very important process to ensure that sales representatives from a retail location were doing the cash deposits daily and accurately. KMK streamlined their inventory management reports based on the real-time monitoring of sell-through and implementing just-in-time ordering resulting into their inventory level reduction for more than $6MM. KMK assisted in developing a direct fulfilment workflow that allowed their wholesale customers to order inventory online, and KMK team would place the same orders with BG’s vendors who would directly fulfil these orders to customer’s addresses. This resulted into cost savings for approximately $1.2M annually for eliminating the need for wholesale warehouses as well as wholesale inventory. KMK used RPA and advanced excel techniques to reconcile different types of commissions that BG received on a weekly basis. KMK could trace the exact details of what BG should have received vs. what it has received. KMK could successfully filed disputes with the carrier and managed to resolve disputes over $5MM+.

Synergies Created

BG could successfully execute an outsourced accounting model and achieved the following desired results.

BG successfully reduced their operational overheads by 50%+ and achieved massive savings with curbing revenue leakages and working capital efficiencies.

With series of processes being streamlined, KMK could manage to reduce their month-end close cycle to only 10 days enabling BG’s management to review financial statements and make business decisions promptly.

BG now has a sustainable and scalable backend solution so that they can focus on their core competencies.

BG now has a reliable and effective accounting team as part of their defence mechanism. BG could achieve timely and reliable financial reporting with improved accuracy and efficiency.

All-in-one Accounting Solutions Incredibly
Accurate Work

Experience the peace of mind that comes with incredibly accurate work from KMK. Our team of professional accountants ensures that your financial records are accurate, reliable, and compliant with all relevant regulations. With KMK, you can trust that your financials are in good hands, leaving you free to focus on growing your business. Contact us today to see how we can help streamline your accounting and improve your bottom line.

For U.S. Based CPA Firms Are you looking for remote staff for CPA firm?

Accounting services are not highly profitable for CPAs, and that’s precisely where our CPA firm clients leverage our services. We can do it, soup to nuts.

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For U.S. Based Businesses Are you struggling with accounting for your business?

At KMK, we offer comprehensive end-to-end accounting services to help your business thrive. From day-to-day bookkeeping to financial statements, our expert team has got you covered.

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In today’s volatile economy, your company may be drowning in a tangle of monetary operations, overburdened staff members, and a lack of scheduling efficiency in operations. And if you’re a CFO, controller, or accounting executive, you know that an effective finance and accounting department is essential for running a successful firm. Accounting and financial planning are two key components of running a successful business. This blog will take you through the theory of finance and accounting outsourcing services, examine the latest developments, and explain how to do it.

If your firm has never used outsourcing as a resource before, you might have some concerns. Even better, you may be wondering why you should outsource your finance chores rather than do them in-house. Continue reading to see why finance and accounting outsourcing have taken over other ways of doing things and why selecting the appropriate outsourced accounting provider is critical to your organization’s development.

Make Sure That Getting Quality Work Is Your Top Priority
When any practice finance and accounting outsourcing functions, quality is of the highest importance. When delivering results, the outsourcing partner must assure quality and accuracy. As a result, it’s critical to begin your outsourcing journey by identifying the appropriate supplier. Here are a few measures to consider when selecting an accounting outsourcing vendor:

  • Increase the amount of time you spend on the evaluation process
    Because your outsourcing partnership may be long-term, you must identify the appropriate collaborator for your practice. One method is to allocate a single project to various outsourcing businesses and analyze the quality of work to determine which is the best match.
  • Conduct a thorough background investigation
    The internet is the most effective tool for locating possible outsourcing partners. Conduct an in-depth search for the top finance and accounting outsourcing businesses online. Find job examples, look for internet reviews, look for achievements, and learn about their image and reputation.
  • Learn how they function
    An experienced and effective outsourcing business would have established systems in place to ensure high quality and shorter delivery times. Discuss their procedures and workflows in-depth to better understand how you can cooperate.
  • Discuss how errors will be corrected
    It’s natural to make mistakes, but they may be costly. Make sure you have a thorough conversation about how the organization will repair problems and how long it will take to make any necessary changes. This conversation will assist you in setting reasonable expectations for both of you.
  • Please provide thorough information
    It’s critical to offer clear and precise directions about what you’re looking for when handing over the work. Before permitting the outsourcing business to start with the task, provide them with all of the relevant facts and check that they understand the demand.
  • Maintain consistent communication
    Communication is critical to the success of any business partnership. At the start of your partnership, talk to your outsourcing partner about how you’ll communicate on a daily basis. Choose your preferred mode of contact and agree to frequent updates on particular days or weeks.

Is It Possible To Outsource Particular Duties, Or Must I Outsource The Entire System?
It is totally up to you to decide which functions to outsource. You can outsource the complete accounting and finance system or specific necessary tasks. Depending on your demands, the outsourcing partner can modify their products to meet them. The finance and accounting outsourcing partner collaborates closely with your in-house staff to complete tasks in order to achieve SLAs. This implies that it is simple for your company to outsource only those particular accounting activities that are not being performed adequately in-house.

What Accounting Functions Am I Able To Outsource?
Bookkeeping
Financial statements
Payroll
Accounting for management
Prepare your taxes
End-of-year accounting
Attempting to make digital taxation

What Qualities Or Capabilities Should I Seek In A Finance And Accounting Outsourcing Partner?
Experience is relevant
Implementation of industry-standard toolsets
Employee qualifications and credentials
Versatility
Communication that is open
Standard security precautions
Thoroughness and accuracy
Delivery on time

What Are The Possible Disadvantages And Hazards Of Working With A Finance And Accounting Outsourcing Providers?

  • Hidden charges
    If your agreement does not cover any additional prices or services, you may be forced to pay more than you agreed upon. As a result, it’s critical to smooth out any concerns that may arise from the outset of your business partnership. The business agreement should spell out exactly what each party expects from the other, as well as the services that the expert will deliver to your company.
  • Concerns about privacy and reliability
    It may be intimidating to share sensitive information and assets with an outsider. There may also be issues with the security of your data. When sharing such information with a professional, it is critical to have precautions in place. You may avoid possible problems by incorporating a safeguard provision in your business agreement and stressing the consequences of deliberate data misuse. You and your partner can also establish a separate non-disclosure agreement.

The Most Common Mistakes In Outsourced Accounting And Financing
Every organization that is new to the outsourcing sector understands that there is a risk of making mistakes during the transition period. And, while mistakes can occur at any time, it is not a regularly scheduled timetabled activity. In reality, most organizations outsource for this same purpose, to ease their existing pain points. Examine the outsourcing pitfalls to avoid and how to protect your outsourcing approach from collapsing.

Choosing the lowest option It’s tempting to save a few pennies, but being conservative with your money is not the way to go when it comes to finances for incredible talent. In the end, outsourcing your work will save you between 50 and 75 percent. You wouldn’t put up with your agent telling you what kind of property to buy, so why would you do the same with outsourcing? When looking for new employees, don’t overlook soft talents. Sure, the new supplier appears to be a good fit on paper, but are they a cultural match?

Making A Choice Of An Accounting And Finance And Accounting Outsourcing Service
Once you’ve decided to outsource, the process of selecting a supplier may become a little more difficult. The last thing you need is to be on the receiving end of an expensive error. But that is precisely what you will get if you choose the incorrect service. That’s why we’ve compiled a list of the top five most important qualities to seek in a collaboration.

Find an experienced outsourcing service provider. If they only have one customer on their resume, chances are they’re not very reliable.
Check that your company’s and corporate values are in sync. You and the firm you select should get along well. Furthermore, your supplier functions as an addition to your staff. When selecting an outsourcing company, consider the quality of the outsourced workforce. Why would you deal with a supplier who hires mediocre talent, just as you would not buy a new or new-to-you automobile without first driving it?
Discover the latest in equipment and facilities. Is your new provider’s software self-sufficient? Is it possible for them to give ISO certification upon requirement?
When deciding between outsourcing services, pay a visit to the facility. Take the time to see these outlying areas. These visits will allow you to meet the people with whom you will be teaming up.