Financial Disaster And Clean Up

Client Background: A small government contractor faced a significant challenge with their financial management. Their accounting records were out of date, with bank downloads being both incomplete and inaccurate. This left them with over two years of bank reconciliations to tackle, creating a daunting task for the company.

Challenge: The client's financial records were in disarray, making it difficult for them to accurately track and manage their finances. The incomplete bank downloads and inaccuracies in their existing records compounded the issue, leading to a backlog of 24 months in bank reconciliations. This not only affected their day-to-day operations but also put them at risk of non-compliance with financial regulations, which is crucial for a government contractor.

Solution: In collaboration with the client, RMOHC evaluated the situation and concluded that the most effective solution was to rebuild the company's books from the ground up. This approach, although demanding, was deemed more cost-effective and efficient compared to rectifying the existing records.

By starting afresh, RMOHC was able to design a new chart of accounts specifically tailored to the client's business needs. This customized setup was not just a reflection of the company's operations but also ensured compliance with the Federal Acquisition Regulation (FAR), which is critical for government contractors.

Results: The rebuilding of the financial records resulted in several significant benefits for the client:

• Clarity in Financial Management: With updated and accurate financial records, the client gained a clear view of their financial status, enabling better decision-making.
• Regulatory Compliance: The new chart of accounts ensured that the company met all necessary regulations, particularly those related to their government contracts.
• Efficiency in Operations: The streamlined financial processes reduced the time and effort required for ongoing financial management, allowing the client to focus more on their core business activities.

Conclusion: This case study demonstrates RMOHC's ability to adapt and provide tailored solutions to complex financial challenges. By reconstructing the client's financial records, RMOHC not only brought them back on track but also set them up for ongoing success in their government contracting endeavors. The project highlights our commitment to delivering practical, compliant, and efficient financial solutions to our clients.