Client Background
A mid-sized trading company approached us with bookkeeping gaps and inventory mismatches. While their 2023 tax return had already been filed, their 2024 books were incomplete—only sales entries were recorded. On top of this, inventory records were unreliable because new items were being created in the system without actual stock availability.
The Challenge
Incomplete 2024 transaction entries (only sales recorded).
Inaccurate inventory due to ad-hoc item creation.
No structured purchase or sales registers.
Lack of reconciliation between inventory, accounts, and physical stock.
High risk of incorrect financial reporting for year-end 2024.
Our Approach
1. Bank & Card Transactions in Accounting Software
Entered all bank and credit card transactions.
Verified that 2023 closing balances aligned with 2024 opening balances..
2. Data Preparation in MS Excel
Built detailed purchase and sales registers.
Coordinated a physical inventory count with the client’s team.
Matched opening stock, purchases, and sales to arrive at an accurate closing inventory.
3. Entries in Accounting Software
Entered SOs, POs, invoices, and bills.
Applied payments and receipts to the correct invoices and bills.
Classified remaining items as expenses or other incomes.
Reconciled vendor and customer balances.
The Solution Delivered
A fully reconciled Trial Balance, P&L, Balance Sheet, AR & AP summary as of Dec 31, 2024.
Accurate, verified inventory figures aligned with actual stock.
Complete financial clarity for reporting and business planning.
Recommendations for the Client
Monthly Internal Audits – Regular checks to ensure reconciliations, stock counts, and records stay up-to-date.
Stronger Inventory Controls – Approval workflows for new item creation, periodic stock audits, and integrated inventory-accounting systems.
Ongoing Bookkeeping Support – A dedicated bookkeeper to maintain real-time records and timely reconciliations.
Results & Impact
Books for 2024 were fully reconstructed, reconciled, and compliance-ready.
The client gained accurate, real-time financial insights for better decision-making and tax planning.
Inventory discrepancies were eliminated, improving stock control and reducing potential losses.
The company adopted structured practices to prevent backlogs, setting them up for long-term stability.
