Case Studies

Case Study - Garment Firm (USA)

Issues
The Garment Company specializing in selling furnishing materials based in New York started during the year 2008. They deal in importing garments manufactured in India and China and sold in the USA.

Due to work pressure, they did not concentrate in accounting areas. They did not maintain proper accounting from the starting of the company. Due to non availability of accounting records and financial statements, they could not file their Corporate Tax Returns from Year 2008 onwards. IRS sent notice to them to file the taxes shortly. Client approached us to complete their book keeping from 2008 onwards and requested us to complete the books as early as possible to file the taxes quickly.

Solution
We studied the available records and requested client to send Inventory Items, Bank Statements from the day one onwards and completed their Bookkeeping till Year 2010 within three months. We provided Financial Statements (Profit and Loss Account & Balance Sheet) to file their Income Tax Returns.

We also sent Accounts Receivable Aging reports as of date to collect the payment from their Customers. Aging report with details helped the client to collect the pending amount from their Customers and increased cash flow to them.

Client was extremely pleased since the books were brought up-to-date and is happy to refer us to more clients, his friends and contacts. Client also asked us to continue maintaining their books in future to avoid hassles from IRS.