Accounting and Corporate Services Setup

Client : A US-based IT Solutions Company

Service Offered : Finance Controlling, Accounting and Management Reporting, Compliance Management

Sector / Industry : IT and ITeS

Client
Objective

The client, a leading Information Technology (IT) solutions company, headquartered in the US wanted to set up its operations in a Special Economic Zone (SEZ) in India. They needed to hire employees, set up the requisite infrastructure, seek regulatory approvals for operating in the SEZ, set up systems and processes around accounting and payroll, manage recurring tax compliances, etc.

Client
Challenges

Challenges for successfully setting up their company in India included hiring employees, setting up requisite infrastructure, seeking regulatory approvals for operating in the SEZ, setting up of systems and processes around accounting and payroll, recurring tax compliances, etc. The company wanted to focus on its core processes and operations and needed a local partner to assist them in setting up the processes around accounting and compliance management.

Client
Solution

We worked closely with the senior management of the company in the US and India to understand the exact requirements of the group for their new company in India. This gave us a clear perspective of the work involved, its criticality and the order in which each of the activities had to be approached.

Setting up the accounting system and processes:

The company started its operations with 100+ employees in first few month’s. As such, robust systems were required to be established right at the outset. We assisted the company with setting up of systems relating to accounting and relevant parts of Human Resources (HR), administration and operations that impact accounting. We assisted the company with:

  • Designing the formats and process flows for data capturing, reporting and documentation to ensure that data is captured at the source itself.
  • Since the company provided IT solutions, we anticipated the challenges that the company would face for recovering employee advances, salaries, etc. due to the high turnover involved in this industry. Accordingly, we advised the company on the process and documentation to be maintained for such transactions.
  • We assisted in designing the process flow for disbursing vendor payments, salaries, employee advances, tax payments, receipts, etc. The company used different bank accounts for these payouts, and it was critical that bank reconciliation, problem resolution and detailed accounting happens on time and without any error to ensure business continuity.

Setting up the payroll system

The employee cost is one of the biggest cost drivers in an IT solutions company. As such, it was essential that the payroll process is set up with precaution. We played a pivotal role in facilitating a payroll process system between the company and the payroll vendor. We assisted the company in the following areas in the initial set-up phase:

  • Suggesting adequate checks and balances in the payroll process
  • We coordinated with the overseas management and payroll service provider every month till the payroll process was stabilized. This was done to ensure all payroll queries were resolved and employees were paid on time
  • We assisted the company’s overseas management to familiarise them with the Indian payroll nuances and calculations from time to time
  • We independently reviewed payroll reports provided by the payroll vendor and company policies for the initial few months by validating it with inputs to ensure they were compliant

We continue to support the company on various matters in areas of advisory, compliance, and litigation support services (including indirect taxation, direct tax and transfer pricing). The services include ongoing compliances, obtaining refunds, handling of tax scrutiny and assessment, monthly management reports, annual financial statements as per the Indian Generally Accepted Accounting Principles (GAAP), and audit liaison.

solution
Impact

Nexdigm worked closely with the senior management of the company in the US and India to understand the exact requirements of the group for their new company in India.

We initially helped design the formats and process flows for data capturing, reporting and documentation to ensure that data is captured at the source itself. We assisted in designing the process flow for disbursing vendor payments, salaries, employee advances, tax payments, receipts, etc.

Nexdigm also played a pivotal role in facilitating a payroll process system between the company and the payroll vendor

Our support to the company in the initial phase enabled them to setup robust processes around critical areas like accounting, compliance management and payroll function for the company in an outsourced environment.

Case Studies

Fair Valuation of an Online Classifieds Service Provider for a Multi-billion Dollar Hedge Fund

Fair Valuation of an Online Classifieds Service Provider for a Multi-billion Dollar Hedge Fund

Services Offered Due Diligence & Valuations

Sector / Industry IT and ITeS

Project Management support for winding-down India Operations

Project Management support for winding-down India Operations

Services Offered Project Management, Due Diligence

Sector / Industry IT and ITeS

Provided Interim CFO Services to a Technology Company

Provided Interim CFO Services to a Technology Company

Services Offered Interim CFO Services

Sector / Industry IT and ITeS

Streamlining payroll process for Zenith Technologies, a Life Sciences Automation Provider

Streamlining payroll process for Zenith Technologies, a Life Sciences Automation Provider

Services Offered Payroll, Administration and HR Compliance

Sector / Industry Healthcare, IT

Carried out a Purchase Price Allocations study for Financial Reporting for a major P.E. Fund

Carried out a Purchase Price Allocations study for Financial Reporting for a major P.E. Fund

Services Offered Purchase Price Allocation (PPA) for Financial Reporting purposes

Sector / Industry IT and ITeS

F&A function and pre-winding up support

F&A function and pre-winding up support

Services Offered F&A function and pre-winding up support

Sector / Industry IT and ITeS

Finance Function Transition and Management for the Client’s Indian Operations

Finance Function Transition and Management for the Client’s Indian Operations

Services Offered Full-Suite Corporate Services

Sector / Industry IT and ITeS

Revamp of tax withholding procedure on import of software and filing for refund

Revamp of tax withholding procedure on import of software and filing for refund

Services Offered Full-Suite Corporate Services (Excluding Accounting)

Sector / Industry IT and ITeS

Tracking and managing all contractual obligations through the use of an AI-enabled platform

Tracking and managing all contractual obligations through the use of an AI-enabled platform

Services Offered Contract Management Services –Post-execution Obligation Management Support

Sector / Industry IT and ITeS

Fair Valuation of an Enterprise Solution Provider for an Indian Financial Institution

Fair Valuation of an Enterprise Solution Provider for an Indian Financial Institution

Services Offered Buy-side Valuation for a Transaction

Sector / Industry IT and ITeS

Project management for winding down operations in India

Project management for winding down operations in India

Services Offered Project Management and Tax Litigation Services

Sector / Industry IT and ITeS

Tax litigation before the Mumbai Tax Tribunal

Tax litigation before the Mumbai Tax Tribunal

Services Offered Tax Litigation

Sector / Industry IT and ITeS

Transforming the contract management process of a global e-commerce company and migration to a new platform

Transforming the contract management process of a global e-commerce company and migration to a new platform

Services Offered Contract Management Services

Sector / Industry IT and ITeS

Related Case Studies

Join our mailing list To receive our latest insights

Enquire Now

Or

Reach out to us at ThinkNext@nexdigm.com