Apollo Group (name changed for confidentiality purpose) is an innovative business solution provider to small and medium business enterprises in Kuwait in the form of Real Estate, Event spaces, and Meeting Rooms. They are located in the Kuwait City and have garnered a considerable reputation for providing efficient solutions and effective ideas for their clients.
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On the surface, the company did not have a problem. The financials showed that it was making decent profits every year and was going in the right direction. When AlPrime took a closer look into its books, there were several discrepancies in the data entered, leading to a gross misinterpretation of the company’s financial position. The company was actually operating in huge losses, and worse yet, it had not the slightest idea.

AlPrime discovered inconsistencies in data from the Apollo Group’s books like
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‍Capitalizing expenses was incorrectly recorded
Insurance payables were recognized as Revenues and Advanced Revenues for the same period
Share Capital balance was inaccurate and was left uncategorized, and Provisions for probable future expenses were not recorded leading to inaccurate financial position and Income statement.

‍So, the experts got to work on correcting all the data in the books through an elaborate process of historical accounting by recording all the bank transactions by classifying them correctly - recognizing income and expenses properly and accurately presenting the assets, liabilities, and partners’ share capital. This enabled them to rectify past mistakes and readjust the books to reflect the right numbers and, thus, the real financial position of the company.

‍During this correction, it came to light that the company had been inaccurately reporting profits of 23k KWD when, in reality, it was facing losses of 37k KWD for the year 2021. A similar pattern occurred in 2022 when the company reported profits of 29k KWD while the losses were over 139k KWD. It made a lot of difference as the management was unaware of this and invested more in loss-making areas of the business, further aggravating the issue. The discrepancy was caught in time before it cascaded into a catastrophic loss for the Apollo Group, thanks to the initiative taken by Al Prime Capital.  Now that the books have been reorganized and corrected, the company's right financial position and net income have come to light, allowing the management to identify the patterns and systems causing them losses. So, they made informed decisions to rectify those issues, restore the company to its glory, and focus on providing ideal solutions to their clients. Al Prime used the IFRS Accounting Standards to bring transparency to the Apollo Group’s financials, enhancing the quality of information and the company's credibility. It was then translated to its overall image of being a reliable solution provider in the real estate business.

‍AlPrime's experts did not stop rectifying the mistakes in the accounting process. They know that mistakes happen due to the lack of financial knowledge and understanding of the management, which is not easily available for everyone together. That’s why in their monthly meetings, to update the company about their reports and financials, Al Prime’s team educates the Apollo Group’s employees about the various terms used in these reports, their interpretation, and their significance in determining the company's financial condition. This encourages transparency throughout the accounting process and empowers the management of Apollo Group to understand the nuances of accounting for making better and more informed decisions.

‍Most companies do their business without needing a dedicated accountant or accounting firm until they face a roadblock. But the need for an accountant goes beyond just solving the issues arising from bookkeeping or accounting. Hiring an accountant like Al Prime helps identify hidden issues that eat away your opportunities from the inside in the form of wasted time, effort, and capital. The example of Apollo Group demonstrates how it is possible to transform a situation of invisible yet real losses into a thriving business. By investing in a good accounting firm, they not only restored profits but also established themselves as a formidable player in the fiercely competitive market.