Introduction
In early 2024, Mercurius Advisory Services was engaged by a U.S.-based internet and telecommunications software startup developing next-gen mesh technology integrated with blockchain. The client required a dependable team to manage their bookkeeping, payroll, and state filings for both Delaware and California, along with annual tax returns and ongoing compliance.
Our engagement began with a review and amendment of their 2019–2020 Franchise Tax Returns and the implementation of QuickBooks Desktop (QBD) as the primary accounting software, chosen for its cost-effectiveness given the client’s low transaction volume.
Discussion
The client operates at the intersection of cybersecurity, blockchain, and telecommunications, aiming to provide accessible internet in rural regions through a decentralized, cost-effective infrastructure. Their product portfolio includes:
• A high-speed mesh Wi-Fi system
• Blockchain-backed digital currency for decentralized networks
• Smart devices at competitive prices
• A distributed AI system for user profiling
• A media delivery platform built on advanced profiling techniques
To transform digital connectivity, a new strategy was required. The idea was to combine decentralized networks, telephony, and broadcasting. This forward-thinking business needed a finance partner who understood sector complexity, could navigate multi-jurisdiction regulations, and respond quickly.
Key Requirements
The client’s top priorities included:
• Ongoing bookkeeping and payroll processing
• Filing and maintenance of Delaware and California state returns
• Annual franchise and federal tax return submissions for 2019 and 2020
• A single, reliable provider who could manage all accounting functions end-to-end
• Seamless communication and ongoing advisory for process improvement
Solution
1. QuickBooks Desktop Setup and Historical Data Integration
We set up QuickBooks Desktop as the main accounting system and organized past financial data, creating a custom chart of accounts to match the client’s business. This gave them a strong and reliable setup for tracking finances going forward.
2. Review and Amendment of Prior Year Franchise Tax Returns
Our specialists reviewed and amended the client’s 2019 and 2020 Franchise Tax Returns to rectify prior inaccuracies. This included identifying misclassified items, reconciling tax obligations, and ensuring proper documentation for both Delaware and California jurisdictions.
3. Payroll Setup and Multi-State Compliance
We configured payroll systems to ensure accurate and timely employee compensation, with a focus on state-specific requirements for California and Delaware. This included onboarding procedures, withholding setup, and compliance with local labor laws and filing timelines.
4. Ongoing Bookkeeping and Monthly Reconciliations
We maintained the client’s general ledger through timely categorization and reconciliation of bank and credit card transactions. Our process involved monthly financial close procedures, producing clean and audit-ready reports for investor updates and internal decision-making.
5. Annual Tax Filing and Compliance Support
To meet ongoing compliance requirements, we prepared and filed federal and state-level tax returns, ensuring accuracy and timely submission. We also kept the client updated on any regulatory changes impacting their filings across multiple jurisdictions.
6. Responsive Advisory and Dedicated Communication
A dedicated point of contact ensured fast turnaround on queries, proactive updates, and strategic guidance, which included cash flow insights, expense forecasting, and best practices for financial operations during their growth phase.
Conclusion
Mercurius delivered a full-service financial solution encompassing bookkeeping, payroll, and compliance across state jurisdictions. We established a clean accounting foundation, rectified past filings, implemented compliant payroll workflows, and significantly reduced the client’s internal administrative burden.
