Penalty avoidance for a US based organization
A US based company, having its business in India, approached FinSmart for Payroll related services. While on the job, FinSmart noticed certain mandatory compliance related irregularities pertaining to important Labour Laws in India. The company was fighting against the ESIC authorities to avoid the penalties levied worth INR 34 lacs (About USD 50000) due to these irregularities. ESIC (Employee’s State Insurance Corporation) is a government organisation that ensures the policies & compliances related to the Health Insurance of the Indian workers are adhered to. FinSmart studied the case in detail and suggested certain legal ways to take care of breached compliances. FinSmart also helped the customer to present the case in front of the authorities which ultimately resulted in reversal of the levied penalties.
Value that was added : –
This valued added service was out of agreed scope of Finsmart Solutions and hence customer widely appreciated the efforts of Finsmart Solutions that eventually saved the customer of penalty of USD 50000. Besides this, the company became complaint to not only ESIC norms but as well as the other schemes related to employees/workers.
Smoothened Accounts Payable functioning despite various challenges
The company is a fast growing enterprise having its Headquarters in USA and operations in India, Singapore, and UK. Since the operations were growing and are widely spread, availability of consolidated and timely information about various spends across regions was becoming a herculean task. Further the approve matrix were not established properly and it was leading to delay in invoice processing and vendor payments, as a consequence. The management decided to opt for centralised invoice processing system and wanted to hire dedicated resources who would ensure quick turnaround of vendor invoices
Our incubation team initially studied the business process and the operational needs of the client. This team primarily identified and assigned the different workflows to client accounts and further prepared a process document which highlighted the classification of transactions.
We were able to reduce the additional costs involved in the process by providing MIS reports pertaining to the transaction, which gave insights on region wise spend under different categories and Paid/Unpaid transactions for the specific region.
Value that was added:
Our team’s response and understanding of the process helped reduce internal escalations, supplier statement discrepancies, improved supplier payment processing and thus helped in smoothening the supplier relations and enhancing efficiency of entire Accounts Payable Process.