Large Company

Company Name: Sinoma Krzysztof Oettingen
Legal form: Sole proprietorship
Form of taxation: Books of accounts - internal accounts department
Company Profile:

The company deals with waste management in a broad sense starting with the purchase of secondary raw materials, through their disposal/recycling (by subcontractors), on to their further resale.

Annual turnover: 35 mln turnover
Number of documents: about 6,000 sales invoices annually, 16,000 purchase documents, 15 bank accounts
Employment profile: On an annual average, about 72 employees, 65 subcontractors
Accounting operations:

Intra-EU supply/purchase of goods, import of services 10 finacial and operational leases that require double entry accounting: for tax and balance-sheet purposes
Settlement of transactions under the reverse charge (calculation and deduction of VAT tax via internal invoices)
Hindered stock records (raw materials "lose and gain weight" depending on weather conditions - the same waste paper changes its weight)
Construction of a production line, preparing materials for production
Number of warehouses and analyses of performance accounts and commodities adequate for the number of branches (8 branches plus smaller subsidiaries allocated to the branches)

Service description

Considering the scale of activities, the client has an internal accounting department, which employs five people at its headquarters. In addition, people working in the branch offices do the preparatory paperwork. The client benefited from an external accountancy office that performed a control and supervisory function. With respect to the development of the company, the managers decided to implement a modern ERP system, STREAMSOFT Prestige. While implementing the system , it became apparent that the current accounting system of the company did not fulfil its task and we were asked to analyse the existing problems. During our audit of the existing system we detected a number of irregularities in its functioning:

  • Inability to quickly access information about the company's standing;
  • The failure by the accounting department to provide information to company employees (no education) led to further failures and mistakes by the company's employees due to a lack of awareness about the tax implications of their actions;
  • A lack of periodic reports for the company’s needs;
  • The incomplete implementation of the new IT system;
  • A lack of willingness to cooperate and learn how to operate a new system ( Personnel and Payroll module as well as Fixed Assets not implemented at all, VAT return and advance corporation income tax not configured - forms calculated outside the system);
  • Manual entries of bank reports;
  • Frequent breakdowns of the chart of accounts - frequent manual corrections were needed;
  • Manual entries of payrolls (about 130 employees);
  • Manual entries of depreciation (the inventory book was kept outside the accounting system, in the previous accounting system;
  • Manual entries of accruals (approximately 100 entries per month) - Accrual records kept outside the system, in the previous accounting system;
  • A lack of any reports generated automatically by the system;
  • Internal invoices had to be manually checked and verified.