Client Snapshot
Industry:
Construction (Commercial & Long-Term Projects)
Location:
Washington, USA
Engagement Type:
Construction Accounting & Financial Reconciliation
ERP Platform:
Sage 300 (Legacy) → Sage Intacct (Post-Migration)
Key Highlights
Impact Area:
GL–AR/AP Reconciliation
Financial Accuracy:
100% Tie-Out Achieved
Historical Cleanup:
FY 2021 & FY 2022 Balances Resolved
Risk Reduction:
Improved Audit & Bonding Readiness
Client Background
Given the nature of construction accounting, even minor discrepancies can significantly impact project profitability analysis, bonding capacity, and financial reporting credibility. In 2024, the company migrated from Sage 300 to Sage Intacct to improve visibility into project– level financials and support future growth. The transition was intended to enhance reporting capabilities and streamline month–end processes.
Business Challenge
Shortly after the ERP migration, the client identified a $780 discrepancy between the General Ledger (GL) and AR/AP aging reports .Although the variance was relatively small, it raised a critical concern:
GL–Aging Mismatch
GL control accounts not reconciling to AR/AP aging reports.
Cost/WIP Impact
Unclear whether discrepancies affect job costs, retainage, or WIP.
Audit/Bonding Risk
Variances elevate audit exposure and bonding scrutiny.
Limited Bandwidth
Bandwidth constraints hinder investigation of multi‑year balances.
ERP Migration Suspected
Discrepancies potentially tied to the ERP migration.
OHI's Approach & Solution
Discovery & Assessment
- Conducted a multi–year reconciliation of GL to AR/AP aging reports.
- Reviewed historical financial statements and prior–year close documentation.
- Assessed whether discrepancies impacted project–level reporting.
- Evaluated system migration integrity.
Instead of assuming the issue originated from the ERP transition, we expanded the scope to review balances year by year.
Root Cause Analysis
The review revealed that the discrepancy did not originate in Sage Intacct.
The variance traced back to:
- $520 – FY 2021
- $260 – FY 2022
These balances had carried forward over multiple years, likely due to timing differences and uncleared items during prior financial closes — a common occurrence in construction environments with long–running contracts.
Importantly:
- The discrepancy was limited to control accounts.
- Job costs, retainage, and WIP calculations were not materially affected
Execution & Stabilization
Our team:
- Reconciled GL to AR and AP aging reports dating back to FY 2021.
- Passed clean, well–documented adjustment journal entries.
- Implemented proper audit trail documentation
- Revalidated all balances post–adjustment.
- Confirmed 100% reconciliation across financial reports.
The process was executed independently, allowing the client’s internal team to remain focused on ongoing project operations.
Results & Impact
| KPI | Before OHI | After OHI | Improvement |
|---|---|---|---|
| GL–AR/AP Reconciliation | $780 Unreconciled Difference | Fully Reconciled | 100% Tie–Out |
| Historical Balance Review | Not Performed | FY 2021–2022 Cleaned | Multi–Year Cleanup |
| Audit & Bonding Confidence | Moderate Risk | Strengthened Controls | Reduced Risk |
| Financial Reporting Confidence | Questionable | Fully Verified | High Assurance |
Following a critical ERP migration, OHI reconciled historical discrepancies, restored reporting accuracy, strengthened financial ontrols, reduced audit risk, and reestablished confidence in ERP-driven financial reporting.
“We noticed a small difference after our system migration and wanted to be sure everything was accurate. OHI reviewed the numbers thoroughly, identified the source, and cleaned it up properly. Now our reports tie out, and we have complete confidence in our financial data and month-end reporting.”
U.S.-Based Construction Company
Financial Controller
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