Introduction
A wellness startup based in Delaware approached Mercurius Advisory Services in January 2023 to outsource its bookkeeping. The business, operating across major e-commerce platforms like Amazon, Shopify, and Stripe, lacked an internal accounting team and had suffered from years of mismanaged financial records.
Previous service providers had incorrectly recorded sales data, leading to unreliable financial statements and unfiled tax returns. The client required a trusted partner to reconcile the books, file pending returns, and provide accurate cost of goods sold (COGS) tracking.
Discussions
The company is a U.S.-based, family-owned business that provides custom safety products, including hand sanitizers, and branded apparel to various sectors, including retail and government. Although headquartered in Miami, they have distribution partners in Central America and Asia and are recognized for their responsive service.
However, due to complex operations and the absence of a dedicated accountant, they struggled with financial compliance issues, including inaccurate categorization, unmatched transactions between QBO and Zoho, and disorganized statements, which hindered timely reporting and tax filings.
Key Requirements
The client required:
• Accurate categorization of transactions across QBO, Zoho, Inventory, Amazon, Shopify, Stripe, and PayPal
• Reconciliation of sales, payments, receivables, and payables
• Cleanup of prior-period financial data from 2022 and 2023
• Generation of correct financial statements and accounts receivable reports
• Monthly cost of goods sold (COGS) calculation
• Filing of overdue tax returns (2020–2022)
• Catch-up bookkeeping for FY 2022 and Jan–Mar 2023
Solution
Our team of accounting professionals with 20+ years of industry expertise performed a complete diagnostic review of the client’s books:
1. Initial Audit and Cleanup:
We began by correcting misclassified transactions and resolving mismatches across QBO, Zoho, Stripe, and Shopify. A review of bank statements and credit card transactions enabled us to reclassify entries and reconcile payments.
2. Reconciliation and Backlog Resolution:
We aligned sales and invoices between Zoho and QBO, updated accounts receivable and payable, and restructured the 2021 financial data and 2022 transactions.
3. COGS Tracking and Reporting:
Monthly COGS were calculated with a clear breakdown of purchase costs, inventory usage, and vendor data, enabling the client to make better decisions.
4. Scalable Support Model:
Initially engaged on a part-time basis, our performance led the client to extend our hours and expand the scope to include past financial years. We now manage their books on a rolling basis with a commitment to accuracy and timeliness.
Conclusion
With a strong in-house team of 350+ professionals, Mercurius provided a scalable, structured, and platform-integrated accounting solution. With clean books, accurate financial statements, and reliable COGS tracking in place, the client gained clarity on their business performance and was able to refocus on growth and operations. They now rely on our dedicated POCs, multi-country expertise, and consistent accuracy to maintain a seamless financial backend.
