Cerebra has implemented sustainable accounting and financial procedures of its client

SITUATION

Our Client, a local startup developing innovative solutions to the smart parking and charging network problems faced by micro mobility, was acquired in 2022 by an American company providing cloud-based software infrastructure for micro mobility vehicles. After this acquisition, our Client experienced the following problems;

• A competent and independent service provider was needed to control and properly structure the accounting, tax compliance and payroll procedures in place.
• The Client was looking for an independent service provider to analyze, report, automate and document the cash flow and payment processes managed by their personnel.
• Since the Client’s post-establishment growth was unpredictably rapid, production, costing and inventory tracking systems could not be properly established. Accordingly, accurate pricing for products could not be made. There was a need to automate this process as soon as possible within an appropriate program and to train their personnel in this regard.

OUR SOLUTION

Cerebra was introduced to the Client by a business partner. As a result of the first meetings with the American co-founder of the company that acquired Client’s shares and her team, Cerebra understood the needs of the management and created a business plan for the solution.

Control of Client’s accounting records, correction and management of accounting, production, payroll and payment management processes and inventory tracking processes will be carried out by Cerebra team.

In this regard Cerebra proposed to manage the following activities:

• Providing services for the control of accounting records to be booked by Client’s in-house accountant; execution of payroll, tax compliance, payment management and financial affairs with third parties such as banks / lawyers / tax advisors, and assignment of a team consisting of a Certified Public Accountant (CPA) manager, Reporting and Consultancy Manager and supervisors and assistants to support them,
• Structuring Client’s processes,
• Keeping all accounting records of the Client in Logo program used by Cerebra,
• Setting up Client’s payroll system in the Delta program used by Cerebra,
• Structuring payment management in accordance with the procedures established by Cerebra for its other clients.

During the first meeting with the Client, Cerebra’s recommendations were evaluated in detail. Within a short period of time, Cerebra team received data from the Client regarding the trading volume subject to the process and the proposal prepared based on the analysis was presented to the Client. Following the approval of the Cerebra’s proposal by the Client, above recommendations were implemented.

In 2022, after Client decided to perform said processes in-house, Cerebra developed a business plan, divided the tasks into two parts: work to be done in-house and work to be done by Cerebra, and proposed the following:

• Records and closing activities are performed by the in-house accountant and controlled by Cerebra,
• In-house accountant visits Cerebra office on certain days of the week to transfer their work to Cerebra team and is trained by Cerebra team,
• Preparation and filing of tax returns by Cerebra,
• Sales invoices are issued by the In-house accountant,
• Payroll system is set up by Cerebra,
• Payrolls are processed by Cerebra,
• SSI notifications are prepared and declared by Cerebra,
• The payment list, prepared by the in-house accountant, will be controlled by Cerebra and payment management is performed in line with the approval to be obtained from the Client,
• Preparation of annual activity and engagement reports by Cerebra

After the business plan was created, Cerebra swiftly integrated into the company team and carried out the following activities:

1. Established the accounting system and trained Client’s in-house accountant on the newly established system. Controlled the previous records, especially the current accounts of customers/suppliers with the respective invoices and payment/collection receipts and generated an accurate and more understandable trial balance.
2. Controlled and reviewed the stock tracking, costing and pricing charts kept manually by Client’s personnel and worked to determine the production and inventory system that would suffice Client’s needs by setting production lines, generating product recipes and counting inventories.
3. The lists of payables and payments which is kept manually by Client’s personnel and did not allow for proper management approval are verified and corrected by cross-checking them with the accounting records and invoices received, simplified to facilitate the follow-up and approval of the head office management, and controlled the bank accounts to ensure preventing the release of any unapproved payments.

OUR IMPACT

Due to its recommendations, Cerebra saved the Client from following problems:

• The cost of building a team,
• Payroll processing cost of employees,
• Financial difficulties due to incorrect and inconsistent cash flow system,
• Loss of profit due to inaccurate pricing arising from incorrect costing,
• Cost of purchase/installation of new accounting software.

Cerebra also provided following benefits:

• The proposed solutions ensured that the company management could be confident in the accurate handling of accounting, payroll, tax compliance, and reporting processes, allowing them to manage the company effectively based on the outcomes.

It ensured that they worked with a trustworthy business partner who is independent and competent.