Case Study - Garment Firm (USA)

Issues

One of our clients, a garment company specializing in selling furnishing materials based in New York, deals in importing garments manufactured in India and China and sold in the USA.

Solution

Due to work pressure, they were unable to 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 the year 2008 onwards. The IRS sent notice to them to file the taxes shortly. The 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 the client to send inventory items and bank statements from 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.

Highlights

The client was extremely pleased since the books were brought up-to-date and was happy to refer us to more clients. The client also asked us to continue maintaining their books in future to avoid hassles from the IRS.