Case Study: Retail

  • Service

    Property Tax

  • Result

    Provided accruals monthly at the store level for a client with thousands of locations across more than 50 states

⬤ 01. Challenges

No Accrual Management or Cohesive Budgeting Process

Accrual management is a critical financial process for companies, typically done on a quarterly or annual basis. However, a large national convenience store client presented a unique requirement – they wanted their accruals to be handled at the store level on a monthly basis.

This posed several challenges as most companies applied accruals annually and adjusted them when tax bills were issued. Variables such as negotiations, valuation reductions, and tax rate adjustments could significantly impact accrual accuracy throughout the year. To minimize the negative effects of incorrect accruals at the store level, the client sought a solution that would constantly monitor and adjust accruals.

⬤ 02. Approach

Comprehensive Strategy for Efficient Accrual Management and Seamless Integration

To address the client’s specific needs, our team devised a comprehensive strategy that involved taking control of the client’s sub-ledger as their agent, enabling us to manage the accrual process efficiently. A key requirement was the allocation of accruals at a granular level, necessitating full control over the sub-ledger. To facilitate seamless integration, we developed an internal template for a direct upload into the client’s accounting system. By assuming responsibility for the entire accrual process, we aimed to provide accurate and up-to-date accruals for each store on a monthly basis.

⬤ 03. Solution

Achieving Accurate and Timely Monthly Accrual Management at the Store Level

In this unique case, our software team successfully delivered monthly accrual management down to the store level, effectively outsourcing the entire process for our client. At the end of each month, we generated a direct upload file, which seamlessly integrated with their accounting system. This approach ensured that accurate accruals were maintained consistently, mitigating the risk of erroneous accruals adversely impacting financial reporting. By meeting the client’s requirement for frequent monitoring and adjustment, we enabled them to have real-time insights into their financial position at the store level, fostering more informed decision-making.

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