The $2.3M Recovery:
Rebuilding a US Manufacturer's Accounting & EDI from Scratch

A US-based consumer goods manufacturer engaged Acgile to address an accounting function that had stopped producing reliable financial information. The client operated on NetSuite with multi-tier in-house assemblies, imported finished goods from overseas, shipped to major retail trading partners through TrueCommerce EDI, and depended heavily on third-party invoice factoring to fund operations. Bank accounts, credit cards, customer accounts, vendor accounts, factoring partners, balance sheet schedules, and the income statement itself were all unreconciled, in many cases for multiple years.

Before any work began, Acgile and the client agreed on the most important decision of the engagement: a 1 January 2025 cutoff. Pre-cutoff transactional periods, on which 2024 tax returns had been filed, would not be modified. Everything from that date forward would be brought to a clean state and kept there. Pre-cutoff residual differences were isolated in clearly labeled cleanup accounts on the balance sheet, positioned for resolution by the client's incoming finance leadership.

Within months of the cutoff, the engagement had reconciled all eight bank accounts, all credit card accounts, three factoring and lender relationships, and over $1.09M in open AP across more than 80 vendors. The EDI intake process, which had previously left Monday's 500+ retailer orders unworkable until the following Friday, was rebuilt as an automated overnight pipeline that delivers a clean order book by 6:00 AM Eastern. A Box.com and NetSuite integration turned signed Bills of Lading into a retrievable dispute defense, and over 3,000 Home Depot dispute packages have now been closed with documentation.

The cutoff was set at 1 January 2025. Bills, expenses, revenue, and cost-of-sales transactions dated before that line were not modified. Tax returns for 2024 had been filed on the historical numbers, and going back into closed and filed periods to restate transactional activity would have created significantly more problems than it solved.

Drawing a clean line in time, however, does not eliminate the past. Vendor and customer balances, bank differences, and accrued purchase imbalances all carry into 2025 whether they are addressed or not. Acgile's solution was a small set of clearly labeled balance sheet accounts that isolate the pre-cutoff residue from the post-cutoff books:

• Vendor Cleanup
• Customer Cleanup
• Accrued Purchases Cleanup
• Bank Accounts Cleanup
• Credit Card Cleanup

These accounts are not a hiding place. They are a labeled, transparent record of what is known to be there and what has not yet been written down. The resolution of those balances (whether through revised returns for 2024 and prior periods, or through write-offs in the current year's income statement) is a decision for the client's leadership and tax advisor. Acgile will proceed as advised. We will not write balances off without authorization.