Medium Company

Company Name: Jerzy Gałczyński New Men Firma Produkcyjno-Handlowa ZPChR
Legal form: Sole proprietorship
Form of taxation: Account books - kept on the client's premises
Company Profile:


The company produces clothes, in particular suits. An additional area of activity is the wholesale and retail of clothing and footwear (both home produced and foreign) in their own chain of stores throughout Poland. There are significant fluctuations in turnover depending on the season.

Annual turnover: 10 mln turnover
Number of documents: about 28,400 sales invoices annually, 5,700 purchase documents, 19 bank accounts
Employment profile: On an annual average, about 110 employees
Accounting operations:


Import/export of commodities under the normal and simplified procedure
Import/export of services 
Work in progress booking, a technical storage facility for low-value materials
The Company Fund for the Rehabilitation of the Disabled 
Funding from PFRON and the European Union

Service description

Prior to co-operating with Meritoros New Men had an internal accounting department which employed 4 people in accounting and administrative positions. In addition, an external accounting office performed tasks related to tax accounting. Accounting and reporting for internal needs was kept in Hermes, whereas the external accounting office used Comarch CDN classic software. The accounting records were entered into the two accounting systems manually . The system was expensive, inefficient and not reliable enough to report to the Board in the right format and at the right time. It also contributed to the occurrence of many dangerous errors. Considering the scale of the company’s operation and the status of the Sheltered Workplace for the disabled, the company periodically needs much more complex reporting on:

  • Monthly income results statement
  • Monthly reports to the CSO DG-1, P-02 and periodically F-01 and SP;
  • Individual reports on actual receipts from contractors;
  • Quarterly balance sheet;
  • Quarterly financial data for banks to renew bank loans;
  • Developed revenues and costs analysis of individual stores/divisions;
  • Cash flow accounts and changes in the capital for the needs of the Fund for the Rehabilitation of the Disabled;

Meritoros was invited to suggest a solution to improve the system, to ensure accuracy, to speed up report generation and, possibly, to reduce accountancy costs.

Our experts started with an analysis of Hermes SQL software in terms of its capacity for the automation of accounting processes and with examining the circulation of documents applicable in the company. For unknown reasons, the previous accountancy office refused to use ERP software. It turned out that Hermes system used by the internal accounting department had extensive capabilities to set up automated processes. We suggested transferring all accounting processes to the system and eliminating extra work caused by the necessity to re-enter documents into the CDN Classic system in order to calculate tax. With a view to offering New Men our services using the Hermes system we trained our employees in operating the software.

Thanks to further amendments made in document circulation, the implementation of new procedures and the automation of processes the number of people working in the internal accounting department dropped from 4 to 3.In turn, the amount of work that Meritoros has to do requires only 2 on-site visits per week in order to check the correctness of records entered by the employees of the department and to complete accounting data. These changes have made possible the immediate reporting on the company's standing to the Board of Directors.

The annual value of the New Men contract is 58,500 PLN which represents a 2.5% reduction in costs when compared to the previous contract. The company also gained additional savings as a result of a 25% reduction in the number of employees who were involved in accounting services as well as a significant improvement of the quality of management information; reports are now generated from the system almost immediately when, prior to our help, they used to take weeks or months to generate. Cooperation with banks was also improved significantly.

Summary of the results of Meritoros' actions:

  • External accountancy costs reduced by 2.5%
  • A 25% reduction in staff involved in manual paperwork in the Company
  • A reduction in the number of errors generated by manual data rewriting between systems;
  • Better access to management and taxation data (data available the next day);

Meritoros does not deal with this particular client’s H.R. issues. New Men decided to continue its cooperation with a specialist in this field.

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