1. The Business: KDT Hotels & Suites Limited
The hotel runs club house and offer accommodation and lodging services. By some standard it is a very successfully run enterprise but business started without financial control function and the owner, having physical control over banking and purchase transaction was satisfied with daily and weekly reviews to be sure that the hotel’s fund was not being stolen. The company kept on with this practice for close to two years until it was time for tax audit.
The challenge was to get records prepared in the format that represents the company financial position and support for tax fillings or reports that would be suitable for the tax auditors review and give them basis to assess the appropriate taxes
The managing director contacted us to request we help with putting the records in order. The first thing we did was to clean up the records. We appealed to the tax auditors for time and began the process of preparing the records from the bank statements and the available records. It was a herculean task as the records were incomplete and revenue agencies was dangling heavy penalty. We dug into the archives to straighten out the books and attended to the tax auditors
When I was confronted with tax queries and penalties because I have no adequate accounting records for tax review, I engage lucky Idiake and company to help clean up our books and attend to the tax auditors. To my greatest surprise the heavy penalty that the revenue authority was dangling at my company was substantially reduced and my company was passed for tax audit. Since then Lucky Idiake and Company have been given the mandate to handle all our accounting, tax and bookkeeping services and I am left with more time to handle our core business.
We attended to the tax auditors and negotiated the fines and tax payable. We took the bookkeeping, accounting and taxation services upon the conclusion of audit exercise. Since then tax filing, audit and response to tax queries are now seamless. The company was passed for tax audit and fines and penalty were reduced and paid. The company is now tax complaint.
2. The Business: Astrolux Limited
Astrolux Resources own Sweet Delite which runs fleets of Fast food restaurants. The managing director handle finance function, corporate image and human resources. She was assisted by her managers and other employees. There was enough capital available for the owner as startup capital which were drawn mainly from savings. The business started well and within six months it grew significantly and established outlets
Suddenly there was a drop in patronage and the revenue began to shrink. The owner and her staff tried to fashion out what was responsible for this and initiated some studies. It soon got out of hand and investment was gradually deteriorating
The proprietor was advised to engage a consultant to look into the operations to identify what is required to be reviewed in order to reverse the course of things. I was contacted for preliminary discussion and review and thereafter engaged. After my initial meeting and walk through the business process, I found that the company enjoyed the initial patronage because they were new and customers wanted to taste and see what was new in the restaurants. Once this happened, the big players in the industry attacked by modifying their restaurants, introduced promo and more investments. This strategy worked strongly against Astrolux. Upon discovery of this, we advised a change in Astrolux business strategy since we realized that Astrolux could not compete successfully with the giants in the food industry with the current strategy. The new process led to: (i) Increase in product variety (ii) Reshaping of the restaurants – change in ratio of space for servicing the customers and where food is prepared, modernization of the outlets, etc (iii) Introduction of new technology and new methods of food preparation. (iv) Proper planning and supervision.
Upon realizing that our business which took off initially very well began to nose dive, we checked to see what we were doing wrong and tried to make amends. The more we changed process, the more things began to turn south until we were recommended to speak with Mr. lucky Idiake of lucky Idiake & Company. Six months after lucky Idiake and Company’s engagement, we noticed that we were able to arrest the downward turn of events. We implemented his recommendations under strict supervision of his staff. The result was, our company affairs turned around.
The cumulative effects of these measures were increase in customer perception, patronage, revenue and profitability
3. The Business: IDI EMBROIDERY LIMITED
IDI EMBROIDERY LIMITED is in the business of flooring. The company acts as middleman between several flooring materials producing companies and the users. The managing director started the company alone as there was no funds to engage other employees. When he receives order for materials he immediately consult he suppliers and tailor his sales in accordance with the dictate of the supplier. He got the business started and made progress within eight months. Then he engaged staff to be remunerated partially on fixed pay and on commission based on sales. The business was largely unorganized in terms of records keeping.
While he was getting good bargain from some suppliers, others were not as profitable. The volume of sales from each supplier were not uniform, tracking sales by agent and suppliers or products was an issue. He wanted to know which supplier’s product was more profitability so he can re-gig his pricing systems. This could not be done because accurate records of sales and cost of sales was not available. Sales by products and suppliers was difficult. He then decided he needs some help from an accounting professional.
The first thing was to recommend that we use QuickBooks accounting package to maintain the accounting records. After subscribing to this the products and services was analyzed and imputed into the systems. All past sales was cleaned up and posted accordingly until the records were up to date. Thereafter invoicing was done on the system real time with proper classification.
After about eight months of being in business, I could not ascertain the direction the business was going and what I need to change to enhance the business sustainability and profitability because there was no accounting records as I could not keep pace with record keeping. I began a search for an accounting firm to help out with resolving this challenge. I contacted Mr. Lucky and discussed the issues with him. We soon agree to work on this together and within two months the records were straightened out and I can analyze my sales according to the products, customers and class. Based on the information, I can either review my pricing or drop some products from my stock list
Analyzing products by customers, suppliers, class, etc could be done within minutes any time. Products profitability and any other analysis was easily done and decision making was made easier than before.
4. The Business: Emcast Works Limited
Vision Quest is Energy, Marine, Engineering, Sand stock piling and selling enterprise. The company obtained contracts and spend most of its revenue in equipment rental. Vision Quest clients are happy with his work and are prepared to support him in the acquisition of equipment so he could keep some of his profit within the business for expansion.
When the company sought bank loan to support the down payment for some operating equipment for mining and manufacturing, the managing director discovered he has not got the reports required by the bank to assess the company suitability for financial support. When he first approach the bank the records were not adequate for the bank as they were incomplete and not professionally prepared. His application was delayed and in fact, it was at the verge of being rejected because they were not comprehensible.
When our firm was contacted, we obtained his bank statements and other documents. We deployed QuickBooks software and input the record diligently and produced professionally prepared financials with notes. The company application was retrieved and restructured.
I was at the point of losing my deposit because the purchase contract was almost tending to being breached when Lucky came in to the rescue. I explained my plight and the situation of the records to him. Lucky set to work immediately and began to clean the books of accounts to prepare a professional account that reflect our business transaction. Within a week the accounts were ready and presented to the bank for review.
The bank reviewed the accounts and were satisfied with it. The loan was approved and the letter of credit was established. Since then Lucky has been my accountant and handles all the accounting, bookkeeping and taxation functions
5. The Business: Bon Apetite Limited
Bon Apetite was conceived to produce good quality bread / pastries at competitive prices, provide a great and conducive working environment full of fun for their customers and employees, and treat everyone with respect and dignity
When Egua set up this company after her several years of working career, she set her objectives to run a company with human feeling and yet be successful. When she began on a happy mood and things started well, she did not bargain for what was to come afterwards. She did not engage an accountant because she believe the experience she had garner through the course of her work will take her through. She made progress at the beginning until she discovered that her entire time was been spent on trying to keep the accounting records. In spite of this, the books were not being maintained according to standards as she struggle to carry out analysis of financial performance and the business begin to suffer. Debts was accumulating and creditors continue to grow. There was multiple settlement of invoices because everything was done on spread sheets and manually too. In order to save her investments she decided she has to hand off financial recording to capable hand and concentrate on her core competence. Our firm, being the business plan developer, was contacted to review the challenges and help out.
We noticed she has left her area of competence to face the accounting and bookkeeping functions. Controls were neglected and the main business drivers were ignored. We took up the financial functions, automate the records keeping by deploying QuickBooks accounting software and serial numbering of invoices was done. Multiple invoices and duplicate bills were flagged off by the system and eliminated. We generate timely and accurate records of operations for her to take the necessary decision. In no time she was able to bring the business on track to meet her goals and recoup her investment
Lucky took over the accounting and bookkeeping services and gave me an opportunity to focus on developing the business and monitoring the achievement of our initial objectives.
The business is up and running very profitably and the objectives are being realized now.
6. The Business: Catholic Men Organization, Lekki Deanery
Catholic men organization is Christian organization that take the lead in the management of the church to ensure the smooth running of the Catholic Church. The organization takes the lead in the raising of funds for the various projects of the church and ensure that the officials officiating priests are adequately taken of.
Until 2017 this deanery took the back seat as it encountered difficulty in raising the necessary funds for the upkeep of the deanery officiating priests and support its activities. Interest weaned and the organization lagged in several aspects.
In 2017 a new executive was elected and Lucky was made the Financial Secretary of the executive team. A brain stormy section was done and we came up with the idea that the principles of marketing a not for profit organization be adopted in revamping the Deneary. That is, increasing perception, wiping out the negative image of the organization, and create a new one in order to attract more member and increase commitments. To achieve this, we identified good leadership, recognize opinion molders, introduced some structural reforms, and initiated participatory monthly meetings where mini celebrations was done. We started membership empowerment programs, provided easy feedback access, organized and participated in exhibition / life improvement events, sponsor and participate in good humanitarian projects, demonstrate fairness in dealings with other societies in the church and maintain a good financial records.
Within a short time the organization began to raise substantial sums of money and regain its pride. Projects were funded, monthly seminars were held and assistance were extended to the less privileged. Membership double and monthly meetings became once again boisterous. Officiating priests are now being taken off as appropriate.