Enhanced Project Accuracy: Cogneesol's Journey from 85% to 100% with End-to-End Accounting Services

The Client:

A full-suite construction company catering from design to execution of projects.

Scope of Work

End-to-end accounting services including accounts payable, accounts receivable, maintenance of general ledger and subsidiary ledgers, month-end closure, fixed assets accounting, project valuation and reporting.

The Client:

Process Bottlenecks

With multiple ongoing projects, gaps had arisen regarding correct property costs classification resulting in misleading profitability across properties. The accounting team further grappled with unorganized data management for properties purchased and sold. These led to:

  • Unallocated project costs across the general ledger
  • Backlog and overdue tax return of two years leading to fines

Cogneesol’s Optimization Solution

With extensive experience in handling real-estate accounting for existing clients, our team of experts conducted a thorough investigation and diagnostics of the client’s accounts. In conjunction with the client team, we redesigned the document management process and software, including creating folders on the cloud and categorizing existing data. Alongside, we:

  • Introduced project-based cost allocation approach to resolve the issue of unallocated project costs, map costs to correct accounting heads, and reclassify property costs to reflect the correct position
  • Cleaned up all unallocated costs and allocated further costs based on asset manual entries with supporting documentation
  • Allocated an additional and dedicated resource to clear the backlog for tax return

We had been vexed by project cost classification issues that led to the non-filing of tax returns. With Cogneesol’s help, our project costing is now as per accounting guidelines. They have made us tax and returns compliant as well. The team is extremely efficient and delivers what they promise!

Impact Delivered

With the implementation of the above steps and complete documentation of the revised processes, our team not only solved the current issues of the client but also made the processes sturdy for future growth. The team brought about:

  • Project costs accuracy improvement rose to 100% from 85%
  • Project valuation and WIP report accuracy increase from 80% to 99%
  • No filing penalties for more than a year

Client Testimonials

It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.

Get in Touch With Us

Find out more about how Cogneesol can help you transform your business. Let us know your key areas of interest so we can serve you better.
Contact Us