Our client entered into a franchise agreement with complex accounting and reporting requirements, including integration with a point-of-sale (POS) and inventory management system. These systems required data exports and imports into QuickBooks via IIF files.
Our accountant collaborated with our CPA to review the franchise’s financial procedures and reperformed transactions to ensure accuracy and completeness. They discovered that improper use of the POS and inventory systems had resulted in incomplete data exports and inaccurate balances. Our CPA identified internal control gaps and recommended corrective actions.
Additionally, we reviewed the client’s corporate lease and discovered that it had been misclassified as a rental expense. This resulted in a material reclassification of \$500,000, significantly improving the accuracy of their financial statements.