Imagine a record-keeping system so chaotic that the previous bookkeeper couldn't locate files and invoices.
Almost everything was done manually with only a rudimentary digital bookkeeping system in place.
That was the situation Fowzia Issa faced when she took over as secretary of Basic Needs Australia, a non-profit organisation that includes vibrant child care facilities.
Fowzia quickly realised that she needed to fix the problem asap.
But she didn't know any accountants so was in a quandary – who could help her solve these problems?
Fortunately, a colleague told Fowzia about Karuna Malik from Forward Accounting.
Read on and discover how Fowzia solved the problem after appointing Karuna.
The implications of 2nd rate accounting practises on businesses and non-profits can have severe downstream effects. For Basic Needs Australia, there were cash flow and debtor payment issues.
After Karuna was appointed, she had a close look at the internal processes and accounting systems.
Soon enough she uncovered many problems, one of which was funding. When government overseers do their inspections to ascertain whether to provide more funding, they can deny the request if the financial records are not in tip-top shape.
Within a couple of months, Karuna overhauled its accounting system and transferred all the data to cloud-based software. The result of these changes was a robust system with information that was transparent and accessible.
Now they had all the information at their fingertips, including payments to related parties, amount of government grants, subsidies received, and so on.
The effect of these changes was apparent: it became easier and faster to request and receive more government funding.
Here is Karuna describing the situation…..
When Karuna started working with Basic Needs Australia, the association had one Montessori School in its portfolio. But after six months, she helped them secure funding for a second Montessori.
After the chaos associated with the previous haphazard accounting 'system', achieving a result like this was vindication that Fowzia's judgement was correct. Change the system, change the outcomes.
There is no doubt that the transparency and robust nature of the accounting system Karuna set up was the primary reason for the launch of the new school.
Further benefits became apparent. For instance, on a day-to-day operating level, the association could pay the related parties (ie, their employees) the correct amount each week without fuss. (Previously, a lot of employees were paid incorrectly and too much time was spent following up with an outsourced payroll company.)
So, there you have it. From a broken-down accounting mess to a state-of-the-art cloud-based accounting and financial management system.
To say that Fowzia Issa was impressed would be an understatement. She was delighted with the support:
“Karuna eliminated all the manual work we were doing. She is technically very strong, and her service is exceptional. I always get to her every time I need her help.”
Karuna also worked diligently with all stakeholders of the association and kept them up to date about the changes and why they were necessary. This is an important point. Change causes disruption and unless those affected are informed about the changes and why they are necessary, stakeholder blowback may cause problems.
Fortunately, Karuna is not only a great accountant, she is also a very good communicator and happy to take time to educate, inform and illuminate all parties about the positive benefits from the proposed changes.
Finally, a parting comment from Fowzia Issa:
“If you are looking for an accountant who can give exceptional service, Forward Accounting is the way to go. I highly recommend Karuna Malik and her team.”
Need someone to sort out your accounting mess? Give us a call on 0452 645 371.
As you can see from the above video Fidel is effusive about Karuna and her team:
"She and her team take care of everything from bookkeeping to BAS statements. They will make everything very easy to understand whether it's your first time running a business to experienced operators."
If you would like to talk to Karuna and see how she can help your business, give her a call on 0452 645 371.
