How HLB HAMT’s Sage X3 Expertise Helped the Trading Company Overcome Accounting Challenges

The client, incorporated on January 1, 2019 in Dubai Airport Free Zone with core activities in trading tyres & rims, marketing research, and marketing consultancy, encountered several operational challenges. They lacked accounting software for real-time financial tracking, making it difficult to efficiently track receivables, payables, and overall cash flow status, leading to delays in financial oversight. They had difficulty tracking purchase orders and invoices due to the absence of a systematic approach, making it challenging to match purchase orders with corresponding invoices, resulting in unclear financial visibility and difficulties in assessing outstanding obligations. While clients maintained a fixed bi-monthly payment schedule, some suppliers demanded urgent payments, creating tensions between adhering to scheduled payments and responding to operational needs. They faced significant challenges in closing accounts on time due to a strict policy that prevented any changes once accounts were finalized, complicating the year-end processing. Delays in receiving invoices hindered the timely completion of intercompany reconciliations, adding complexities for the finance teams and affecting financial accuracy. Preparing monthly reports in a 'txt' format was labor-intensive and inefficient, requiring exploration of automation possibilities through accounting software integration.

HLB HAMT provided comprehensive solutions to address each challenge. We provided weekly statements detailing outstanding balances, including receivables and payables from our accounting system, enabling clients to track financial data more efficiently and in real-time. We implemented SageX3 Internal Accounting Software to track Local Purchase Orders (LPOs) and Open Purchase Orders (OPOs), improving the monitoring of purchase order status against supplier invoices. We sought special approval from the Finance Manager to prioritize urgent supplier payments and maintained detailed records of these approvals for accountability. A comprehensive checklist for monthly checks and year-end closing was established to ensure the accuracy and completeness of financial data prior to final closure. We improved communication with internal teams to ensure timely invoice submissions and requested regular checks of the Intercompany Portal to reduce delays in reconciliation. We researched automation tools to enable automatic report generation in the required '.txt' format, streamlining the preparation process and reducing manual work.

The implementation of these strategies resulted in several positive outcomes for the client. Automation and integration of accounting systems streamlined the tracking of financial data, purchase orders, and invoices, leading to faster, more accurate processing. Clearer timelines for year-end closing and intercompany reconciliation helped ensure that all financial activities complied with company policies and internal deadlines. By reducing manual effort and delays, resources were used more effectively, minimizing the risks of late payments or missed invoices. The automation of repetitive tasks allowed the finance team to focus on higher-value strategic activities, improving overall productivity and operational effectiveness. The client achieved enhanced financial tracking through automation, improved efficiency through streamlined processes, and better resource allocation through reduced manual workload.