Case study: sector of long-term rental of passenger cars
Case Study: support within the scope of purchase invoices processing and management of the fixed asset register for a company operating in the sector of long-term rental of passenger cars
The customer and the challenges they needed to face
The customer specializes in long-term rental of vehicles and car fleet management for companies and institutions. The customer offers comprehensive leasing services, including repairs, insurance and cost management, helping their customers optimize fleet management and reduce vehicle-related costs. The company has been operating in international markets and belongs to the group of a bank with one of the highest market capitalizations in the eurozone.
The customer struggled with serious difficulties concerning their staff in the accounting department, including high employee turnover, which resulted in discontinuity of activities and insufficient qualifications in crucial areas, such as processing of purchase invoices and fixed assets register. As a result, the company had problems with ineffective management of accounting processes. In the face of such challenges, MDDP Outsourcing received an inquiry about providing fast and efficient support. Thanks to the professionalism and experience in outsourcing services, a quick reaction was possible and the order was accepted almost overnight, which turned out to be of key importance for the customer.
Systemic solutions – fast team on-boarding
One of the challenges was posed by the fact that the customer used a custom accounting system while the employees who were leaving the company had little time to share their knowledge, so the full understanding of the system features was difficult. Despite of the lack of full instructions, the leader of the MDDP Outsourcing team quickly prepared detailed manuals and procedures that were adjusted to the specific nature of the system. The specialists immediately learned about the key features of the system e.g., how to input data, post transactions and generate reports. Thus, the implementation process was smooth and the team could quickly assume full responsibility for the accounting.
Processing of purchase invoices – from an analysis to a complete integration
One of the key tasks that was taken over by MDDP Outsourcing was the processing of purchase invoices (Accounts Payable). A detailed analysis of the existing procedures was carried out in order to identify the areas which needed optimization. We implemented the necessary changes, including a detailed description for the circulation of documents of individual suppliers, which allowed for smoother and more effective invoice processing and ensured promptness of the settlements. What is more, the quality of accounting management was improved already after the first month of our cooperation, which was clearly noted and appreciated by the customer.
Reconciliation of fixed assets and register – a comprehensive approach towards accounting
The fixed assets register was another key area that required our intervention. A thorough analysis of accounting entries and the actual situation was carried out which helped us quickly identify and clarify many discrepancies between the ledgers and the fixed assets register. The customer was advised that failure to meet the statutory deadlines of fixed assets inventory could lead to serious legal consequences. When the customer prepared the inventory, any non-existent fixed assets were removed and the records were complemented with those fixed assets that had been identified during the inventory but had not been amortized so far. As a result, it was possible to reach full compliance of the fixed assets register with the actual state of assets and the accounting entries.
We also conducted a detailed analysis of the period of use and correctness of assignment of fixed assets to their correct amortization and depreciation accounts. The amortization rates were verified, especially from the tax perspective, and all historical errors were corrected. Thanks to such activities, the customer’s accounting books could be handled honestly and in line with the applicable regulations, which eliminated the risk of reservations on the side of tax authorities with regard to the calculation method of the amortization.
Solving communication problems and continuous cooperation with the customer
During the cooperation, we encountered problems connected with communication due to the employee turnover at the customer’s company. MDDP Outsourcing had to assume many tasks that exceeded its duties arising directly from the contract and the customer was immediately informed about any problems in order to undertake corrective actions. To improve the communication, we organized weekly status meetings to ensure a fluent flow of information and transparency of the processes.
Data safety – the priority of MDDP Outsourcing
MDDP Outsourcing cares for their customer’s data safety at every stage of the cooperation. A VPN tunnel was implemented to ensure safe, encrypted communication between our team and the customer. As a result, the transferred data was under the highest level of protection and the customer was reassured that their sensitive information is completely safe.
Key advantages of outsourced accounting provided by MDDP Outsourcing
Thanks to the cooperation with MDDP Outsourcing, the customer not only received full accounting support but also:
- Greatly reduced the operating costs, significantly reducing the number of employees in the in-house accounting department.
- Gained access to specialist knowledge and experience of experts, ensuring compliance with regulations, improving the quality of accounting management and limiting the risk of reservations of the tax office with regard to the correctness of the tax settlements.
- Ensured safety and optimization of accounting operations and gained the opportunity to focus on the crucial aspects of their business activity, without worrying about the accounting.
The cooperation with MDDP Outsourcing guarantees professionalism, flexibility and full compliance with the applicable regulations. The company’s approach towards processing of purchase invoices, fixed assets register and amortization results in comprehensive accounting management that eliminates the risk and favors the company’s growth. Feel free to contact us so that we can help you optimize the accounting processes in your organization – MDDP Outsourcing is your partner in success.