Two weeks ago, we received an invite from one of the reputable Transport and Haulage Companies in Nigeria. This company is a group with three (3) subsidiaries: one is a spare part importation and engineering department, the other provides transport services while the third provides logistics services to FMCGs.
The three (3) departments use QuickBooks Enterprise to manage and track cash flow on a daily basis. However, there are some challenges: improper posting of transactions that resulted in several imbalances, and wrong ending figures in the books of account.
In resolving this, we conducted a full review of their QuickBooks entries and discovered that despite the fact they have been using the software for more than 5 years, their transactions were not treated the way they ought to be treated in the accounting software. This, coupled with similar challenges from clients in other industries, led us to conclude that a lot of QuickBooks users in Nigeria are neither exploring nor maximizing the full potentials of the software. We have reviewed QuickBooks Chart of Account, from real estate to hospitality, oil and gas sector, manufacturing, retail, credit company, etc., and we found out that there were irregularities in the Books of Account.
What we found in their books of account:
Upon review of the company’s QuickBooks accounting software, we discovered the following irregularities on the file that manages the transport service section:
- Wrong Set-up of the branches and the buses under management.
- The sales of tickets and branch expenses were wrongly treated.
- Cash deposit by various branches cashier into the bank was wrongly treated.
- Bank balances were in red, indicating that such accounts were overdrawn.
- Cash deposit on tickets sold for the day was not sent or attached to the sales receipt for validation.
- The Class list did not represent branches and as such, profits or losses by branch report were not available.
- Reconciliation of the bank statement will not be easy if “write check” window is used for the cash deposit.
- The customer balances’ did not reflect the actual position of the company