Case Study: Food & Beverage Industry
Background information:
The increasing demands within the service industry has resulted in business owners stepping back from the bookkeeping to focus on other managerial priorities. This is something that is often recognized in the restaurant industry over time as the business owner becomes more established and is seeing the importance of meeting tax deadlines, payroll, as well as relieving some of the never ending workload.
Problems:
- Inconsistent receipt collection methods
- Large amount of transactions
- Time consuming payable entries/accuracy issues
- Messy monthly reconciliations (if complete)
- High interest loans
- Late payments on sales tax
- Late filing of source deductions
- Line of credit consistently used
- Covid-19 closures and layoffs
Solutions:
- Created a payable exclusive email address that suppliers send invoices to, this is shared to a digital inbox that is accessible by the business owner(s) and the Indigo team.
- Reconciliations completed weekly to ensure month end accuracy and to find unknowns quickly.
- Studied opportunities for Covid-19 grants and subsidies for individual businesses and applied for those that were applicable.
- Proactively apply for funding on behalf of the business.
- Created and dispersed ROE’s as needed in a timely manner as per changes with closures.
- Managed cash flow as per payable terms.
- Communication on tax filing confirmations and schedule of payments as per their due dates.