FRS International LLC
Director of Operations
FRS has been working with the FinAccurate team since 2015. They manage our accounting operations from end-to-end: AR, AP, payroll, taxes, reporting – everything! Jay and her team are truly a pleasure to work with: knowledgeable, detail-oriented, efficient, professional and responsive. We couldn’t be happier with our partnership with FinAccurate.
Director of Operations
Services Provided by FinAccurate:
- Accounts payables
- Accounts receivables
- Bank account recording and reconciliation
- 1099 Filing
Financial Analysis, Reporting and Forecasting
- Month end close
- State sales tax filings
- Monthly financial package
- Monthly major balance sheet account reconciliation
- Accrual accounting
- Annual inventory valuation
- Year-end review analysis
- Monthly review of financials with Small Business Owner
- Operational insight
- P&L analysis with trends of key metrics
- Complete end of year reporting and analysis for CPA
- Coordinate with payroll providing input including changes in pay, bonuses and reporting paid time off.
Original company was being restructured to three entities as a result of an acquisition. In parallel the current Controller was relocating to Brazil. As a result, there was a need to get someone in place immediately to properly set up the new company in Europe (FRS International AG) and establish a U.S. subsidiary (FRS International LLC). FRS’ CPA introduced Tom Lines, CEO of FRS, to Jay Ganapathy at FinAccurate. Lines intent was to secure FinAccurate as their outsourced accounting department and hire a CFO given the complexity of the financials.
The new company accounting structure was not in place. Accounting for the transfer of assets from one original entity to the resulting three entities had not been properly accounted for in SAGE. There was no clear delineation in place to define the three entities.
Transition/Setting up Entity
FinAccurate faced two primary challenges as described below:
1. Geographic Challenges
- CEO – Switzerland
- FRS International Corporate Office – Boston, MA
- CFO – Virginia; unavailable to support transition and setting up new entity. Provided acquisition documentation and spreadsheet to FinAccurate via email and participated in one, one hour meeting.
- Controller – moving to Brazil with limited to no availability to support set up.
- Director of Operations – California
As the above highlights, the professionals expected to be part of the team in setting up the new entity were geographically dispersed adding to the complexity of planning for and setting up FRS International LLC. With the CFO and Controller unavailable to support the effort, FinAccurate led the transition and due to their expertise and experience, completed the transition and setting up the entity virtually, saving the new company time and travel expense.
2. System Challenges
After the acquisition, FRS International operational transactions continued to be entered in SAGE, mixing transactions for the previous entity with the new entity. The FinAccurate team solved this challenge, separating the FRS International transactions, and recording them in SAGE. FinAccurate established ongoing processes to maintain separate and distinct accounting for FRS International.
In just two months, FinAccurate accounted for establishing the European entity, completing the acquisition accounting and setting up the subsidiary in the United States. Chart of accounts, bank accounts and operational accounts were created. State sales tax filing processes were established and company financials including for the subsidiary were put in place. After the first month the CEO realized there was no need to hire a CFO as FinAccurate had the expertise to establish the new organization’s finances and manage and maintain its books.
Since 2015, the FinAccurate team has provided outsourced bookkeeping and accounting services. FinAccurate works hand in hand with the FRS Director of Operations to ensure accurate and timely financial reports are available for informed decision-making by the company’s CEO. Monthly meetings with the CEO include review of the financials and discussing areas identified to improve processes and controls. The company remains geographically dispersed across multiple time zones with the CEO living principally in Switzerland, accounting and CPA services provided in Boston and operations in California.
- Company previously had 5 FTEs in accounting. With FinAccurate as outsourced partner, 1 FTE; 80% savings.
- Highly efficient, automated bookkeeping and accounting operation in place supporting a remote CEO with complex accounting demands for international distributor.