About Strat-Afrique Ghana Ltd
Situation before 2016
- Strat-Afrique compiled its transaction data – invoices, Excel spreadsheets tracking bank and cash transactions, and submitted them after the month end.
- SCG received and captured the data into a desktop software located in its office.
- The client had to develop and maintain systems for tracking cash and bank transactions and generating the paper work needed for accounting purpose.
- The transactions documents were submitted for processing some days after the month end. As a result, the financial reports were delivered between 15 and 21 days after the month end.
- If the manager needed an underlying report to review, he had to make a request and would generate the report for him.
- The financial reports were delivered days after the month had ended – typically between the 15th and 20th of the next month.
- The budget was not captured in the desktop software, so the client could not readily compare budgets to actuals and act in a timely manner.
- The client made decisions without a true understanding of its financial position and performance.
The SCG Solution:
In 2016 Strat-Afrique agreed to participate in a trial of XERO, an online accounting software. As part of the trial process:
- We set up Strat-Afrique on XERO and trained the administrative person on how to use XERO.
- We also created standard procedures that the administrative person should follow to capture daily recurring transactions such as bank, petty cash expenses and invoices into XERO as they occurred.
- We uploaded the client's data into XERO.
SCG's role changed to:
- Review of the data capture for accuracy – codes, descriptions and amounts. That is possible because we have access to the same database as the client, so we can see what is going on.
- Journals and adjustments – we pass all journals and any adjustments needed.
- Reconciliations – we prepare all reconciliations.
- Closing of books – we perform all the activities needed to ensure that the accounts were complete and accurate before closing the books and preparing the financial statements for the month.
- Vat and withholding tax returns – we review the returns prepared by the administrative person to ensure in compliance with the law.
- Reports and analysis – we prepare and analyze the financial statements.
- Discussion of business and financial matters – we meet with Strat-Afrique every month to discuss the reports, the business implications and offer recommendations to address unfavorable outcomes.
Situation after implementing XERO
- Bookkeeping is done on a daily basis as the transactions are carried out by the administrative officer with an accuracy rate of over 80%. The accuracy rate continues to improve as he becomes familiar with codes and the transactions.
- The manager, who works from different locations, can access real time financial data wherever he is. He is able to keep an eye on his accounts and make decisions using data that is up to date.
- The manager and administrative officer have access to the accounts and can drill into and review the ledgers at anytime, anywhere if they have access to the internet.
- Since the team is mobile and works offsite they now use XERO's to capture expenses they incur working out of the office. The paper work for accounting for expenses is reduced and refunds are processed much faster.
- The SCG team spends more time on analysis and advising the client on business and financial matters.
We are a Silver Partner of XERO based in Accra, Ghana.