Advisory

Davella’s advisory practise was established in 2007 under Master Consultants Ltd. We continue to operate both firms in providing a comprehensive range of transformative business solutions throughout East Africa. Our happy clients include mid-market companies, growth organizations, development agencies, public sector and other “not for profit” entities.

Our Consulting professionals have deep expertise and a broad spectrum of service offerings that enable us to provide high value business solutions on a range of business challenges. They have been exposed to a number of key market segments in both the private and public sectors which ensures that the solutions they provide to clients is not only tailored to that particular sector’s needs but is also practical and effective.

Our Advisory solutions are categorized into:

1. Business Support Solutions

We provide a range of transformative solutions to support businesses as we allow them to focus on their core mandate. Clients choose to outsource functions for a number of reasons and, therefore, our services vary by client and technical backup and support needed to meet their specific needs. We have expertise and capacity to act as bookkeepers/accountants, payroll department and other technical areas.

An outsourced finance department, for instance, can significantly reduce your administrative, IT and finance staff costs. With Davella LLP Staff performing your accounting and administrative functions, you will have continuity of service and more time to concentrate on growing your business.

Our specialists work to understand the dynamics of your organisation so that your specific accounting needs are met. We provide management with information vital to the running of the business. We will ensure that you are fully compliant with regulatory requirements and that you meet reporting deadlines. We can also help you prepare and/or review an internal financial procedures manual based on best practice and the systems adopted by your organisation.

Our Outsourced functions include:

i. Book keeping Services

We can:

·  Complete your books and records on a regular basis.

·  Provide assistance with the installation and training of your staff on leading accounting software packages e.g. QuickBooks, Sage Pastel, Zero.

· Assist you in developing accounting systems and procedures that allow you to gain assurance over the operations of your organization.

·  Assist with cash flow analysis and Reporting

 

ii. Payroll Services

Payroll comes in all types and sizes. They may vary in their degree of complexity but they all have one thing in common – they’re urgent. This is why we have a dedicated team of specialists geared up to providing a timely, accurate and flexible service, tailored to suit your needs.

We can relieve you of the pressure of calculating PAYE, overtime pay, per diems, sick pay, and all the other variables that arise. We take care of all the forms and paperwork, organizing our schedule to meet your timescales and ensuring that deadlines are met. Alternatively, we can also provide PAYE training if you prefer to do it yourself, and a dedicated contact to help in case you run into any difficulty.

iii. Fixed Assets Management

Fixed assets (both tangible and intangible assets) usually carry one of the largest values in the balance sheet of any organization. It is imperative that the assets are properly accounted for identification and valuation purposes.

Fixed assets management allows companies reduce expenses through loss prevention and improved equipment maintenance. They reduce new and unnecessary equipment purchases, and they can more accurately calculate taxes based on proper depreciation schedules. Davella’s outsourcing team is here to assist you with your Fixed Assets Management needs. We can assist you with:

• Set up of a fixed assets register

• Maintenance and updating of a fixed assets register

• Identification and tagging of assets

• Sourcing of professionals for asset valuation purposes

 

2.Finance and Accountancy Advisory Solutions

i. Preparation of Final Accounts

We understand the challenges the preparation of Financial Statements sometime present to Organizations. Final accounts are prepared annually causing a lot of disruption to operational activities. Critical staff are distracted from their core mandate as they focus on the preparation of reports. Their unavailability can present a huge cost to the Company. In addition, the non-core feature of financial statements preparation results in the following challenges:

·  it can lead to inconsistencies in presentation and degree of compliance with accounting standards

·  the continued revision of IFRS and other financial reporting standards makes it increasingly difficult to have all those involved in financial report preparation sufficiently skilled, particularly when this task is performed only once per year

·  it reduces the opportunity to gain synergies and efficiencies and therefore reduce costs.

Davella seeks to address this challenge to Organizations. We can provide you with expert support when you are preparing your year-end statutory accounts. Depending on the level of assistance you need, we can help you get ready for an audit or undertake the complete preparation of your accounts in time for your annual audit.

We can help you in:

· developing all financial report templates and agreeing them with management and the respective entities auditors before each year end;

· updating the financial report templates each year for changes in accounting standards;

· providing information request lists well before year end and training your staff on these requirements to maximize reporting efficiencies;

· assisting your staff to produce ‘auditor ready’ reporting packages, including all reconciliations supporting financial report disclosures;

· establishing a dedicated and secure repository for all parties to easily upload and download all required information;

· performing a technical review by our senior audit personnel prior to finalization; and

· making all prepared financial reports available in Adobe PDF format

We cover all kinds of organisations for this service, including limited companies, partnerships, charities, trusts, sole traders, joint ventures and other business entities.

ii. Preparation of Management Accounts

Management accounts help a business Organization to make fundamental commercial decisions on issues such as funding, risk minimisation and performance improvement. In addition, a direct financial benefit of management accounts can be the identification of unclaimed VAT, supplier over-payments and pre-year-end tax planning opportunities.

We can set up your chart of accounts to ensure that you receive the correct management reports when you need them. We can prepare management accounts monthly or as appropriate allowing you to review the financial performance of your business. We can assist with the preparation of financial projections. We can also prepare year-end accounts for you, with a fully cross-referenced working paper file ready for submission to the auditors. Further, we help you to make the most out of the information by working with you to use the information to improve the business strategy and processes.

iii. IFRS & IPSAS Training and Capacity Building

Under our consulting firm, Master Consultants Ltd, we have developed a comprehensive curriculum with a number of tools that would be useful in assisting our clients to excel. Included in our learning pack are:

· Real life scenarios to demonstrate application of the standard;

· Sections explaining principles and theory;

· Worked examples to show aspects of the standards in action;

· Reference materials to support the learning

Participants who attend our IFRS/IPSAS Training receive certificates of attendance recognized by National Industrial Training Authority (NITA) and may file for CPD hours with ICPAK.

We also provide advice on a case-by case basis for various technical complexities that you may face. We research solutions that enable you to meet your objectives without violating the requirements of various reporting standards. Our training for staff on compliance with IFRS and related frameworks can be tailored for your specific needs and delivered to your staff at your premises.

iv. IFRS Implementation Solutions

The implementation of IFRS is not just about changing accounting policies. Davella professionals have extensive experience in helping clients plan and execute complex and challenging IFRS conversions, and can provide assistance with different facets of the implementation process, including helping reporting entities:

· Evaluate the potential impacts of IFRS;

· Assess readiness for IFRS conversions;

· Implement a detailed implementation plan for IFRS conversion, including providing support with project management, technical research, and training;

· Develop a plan for sustainability;

· Address the implications of IFRS in such areas as treasury, tax, financial operations, technology, and valuation;

· Design and implement control frameworks, efficient information technology architecture and data

· Streamline statutory financial reporting processes etc.

v. Reporting Advisory Services

Davella provides a variety of financial reporting services, including supporting entities in their efforts to:

· Apply International Financial Reporting Standards or other Generally Accepted Accounting Principles to complex or non- routine transactions;

· Adopt new financial reporting standards or regulations;

· Comply with the requirements of complex accounting standards; and

· Evaluate accounting policies for compliance or benchmarking purposes.

· Helping entities prepare financial statements (including those of a business to be sold, spun off, or acquired), pro forma financial information and other financial information included in regulatory filings;

· Assisting entities respond to comment letters and other inquiries of regulators;

· Providing training to update employees in financial reporting standards and the requirements of key regulators;

· Assessing post-merger/acquisition reporting requirements and implementing related processes necessary to fulfill these requirements; and many more

vi. Improving the Quality of Charts of Accounts (COA)

Many organizations start their COA redesign journey with a very narrow focus and a lack of awareness of the broader downstream implications. Drawing from our expertise, we can help to analyze your chart of accounts nit only for compliance with your reporting requirements but also for ensuring conformity with the International Standards.

vii. Due Diligence Assignments in Acquisitions and Disposal of Businesses

We provide due diligence services for acquisitions, disposals and public and private offerings. Our services checks that the target company (accounts, organisation and activities) is all that it claims to be and ensures that the purchaser does not acquire unknown liabilities.

Our team undertakes a structured and thorough approach to due diligence projects which include:

·    Understand the strategic aims of the transaction and the critical success factors for the acquirer or investor.

·    Agree the time scales and resources required, the scope of the overall project and key areas of risk on which to focus.

·   Undertake the various analyses. Some will be completed in the field and others using external and internal office-based resources. Depending on the nature of the business, the work may involve site visits and property inspections, the valuation of intangible assets such as intellectual property rights, physical stock takes and discussions with key customers and suppliers to ensure the contractual arrangements are sound. The points at which key issues are reported are flexible so that costs can be kept to a minimum if it appears that the transaction will abort.

·   For public transactions, there will be a need for formal long and short form documents for potential investors that confirm the necessary due diligence has taken place. In private transactions (such as trade sales) there may be a requirement for specific reports.

·   The results of the due diligence may indicate that additional warranties, indemnities and guarantees may be required and/or that purchase criteria and considerations may need to be reviewed.

·    We work alongside the deal team to provide the records and analyses required for the successful completion of the transaction.

Whilst we do work on due diligence projects on a standalone basis, often we will be involved in the wider aspects of the transaction and are often retained to provide continued support and advice to companies.

viii. Other Finance and Accounting Solutions

. Budget development

. Working capital optimization

. Accounting department optimization

. Cost reduction

. Fund Management, Grant compliance and analysis

. Performance Measures, Incentive Schemes and Score cards

. Market analysis for risk identification

. Financial modelling services for new business ventures.

 

3. Tax Advisory Solutions

i. VAT Returns

Value added tax is one of the most complex and onerous tax regimes imposed on business - so complex that many businesses inadvertently overpay or underpay VAT. The ever-widening scope of VAT, the constant stream of detailed changes to the regulations, and the ever-growing demands of Customs and Excise call for a trained professional eye to ensure that you do not fall foul of the regulations, and do not pay the Kenya Revenue Authority more than you need to.

At Davella, we provide an efficient cost-effective VAT service, which include:

·  Assistance with VAT registration

·  Advice on VAT planning and administration

·  Preparation and submission of VAT returns

·  VAT planning to minimize future problems with KRA

·  VAT health check reports

·   Negotiating with Domestic Taxes Department of KRA in disputes

ii. Capital Gains Tax Solutions

We offer capital gains tax planning to our clients so that whether clients are in business or not we can help to mitigate the resulting capital gains tax.
This may be achieved by a number of means such as:

· Advice relating to reliefs

· Advice on the timing of gains and losses

· Gifts of business assets

· Advice prior to the sale of a business

iii. Self Assessment Tax Returns

We prepare our clients’ tax returns on an agreed fee basis where possible and make the whole process as simple as possible from the client’s point of view.

The process is a yearly cycle with, where appropriate:

· Pre year end tax planning

· Collection of tax information from various sources

· Preparation of the tax return

· Obtaining the client’s agreement to the return

· Filing the return with KRA

· Advising on payments of tax on account

· Reduction of payments on account where appropriate

· Claims for allowances and reliefs as relevant

iv. Other Tax Advisory Solutions include:

· Consultancy to align taxation strategy with business strategy

· Tax training, seminars and workshops for updates on current national, regional and global tax developments

· Negotiate with Kenya Revenue Authority, in case of any Discrepancy, Fines or Tax refunds; and ensure that the entire Tax Information is ready for Audit and Reconciliation

· Tax Advisory, Providing Answers to Queries and/or opinions on Tax matters including Research, Discussions and Attendance of meetings relating to these matters as Instructed by you.

· Advisory on the Taxation effects of Proposed Business Transactions, different methods of Business Structuring and Financing and their Tax Implications.

· Tax Planning Advisory on the Taxation of Employment Income Accrued/Derived in Kenya by the Expatriates in line with the Double Taxation Agreements put in place by the Contracting States.

· Tax Planning & Advisory on the determination and Payment of Instalment and Final Corporate Taxes

 

4. Family Business Solutions

We help family businesses to grow and develop through the generations and therefore realize their full potential. We appreciate the unique challenges and needs that family businesses have, whilst our impartiality helps to support organisations to solve any differences that may arise. Through a tailor-made solution that is unique to your business, we devise solutions that reconcile the separate requirements of the family and the business both in the short and long-term.

Our services to family businesses include:

. Developing strategic plans

. Succession planning

· Family wealth growth and preservation

· Strategic business planning

· Family business governance solutions

 

5. Enterprise Risk and Compliance Solutions

i. Enterprise Risk Solutions

Technological innovation, globalization, complex regulation, and increased accountability at the senior management and board levels have all combined to significantly change the landscape of risk management today. Managing risk has become increasingly complex due to the following factors:

- the Network Economy

- the emerging risks of e-business from online security to customer privacy,

- the increasing need for knowledge of local legislation and customs,

- the evolution of trading markets,

- the nature of pervasive information technologies,

- higher accountability standards for boards of directors and senior executives,

- the unprecedented complexity of the regulatory environment,

- pressing needs for better risk reporting

- need for more integrated and comprehensive risk management

- shortage of skilled personnel among others.

In response to these changing conditions, and in order to help our clients to grow and succeed, we have enhanced our advisory solutions to include Enterprise Risk Solutions.

 

Davella’s Enterprise Risk Solutions offers a comprehensive array of services designed to help clients understand business risks, determine acceptable levels of exposure, implement controls, and provide on-going measurement and monitoring of the risk environment and of compliance. We help our clients to manage risk, whether existing or potential.

ii. Regulatory Compliance

With the complexity of the rapidly changing regulatory environment that impacts the way organizations do business, we have continued to develop our capacity to assist our clients with navigating the specific regulatory requirements they face to ensure compliance. Our regulatory compliance services include:

a) Regulatory Remedial Services

When actions are taken by the regulator against organizations failing to comply with their regulatory obligations, Davella can assist in various areas to help organizations navigate their regulatory obligations.

b) Review of Compliance Framework/ Compliance Health Check

Whatever the specific focus, we can help to provide feedback as to whether compliance requirements are being met just like we do for tax. Reviews can be focused on specific areas or cover the overall framework and compliance strategy. Main targets here should be heavily regulated entities such as banks and their borrowers, Insurance Companies, Listed entities, Insurance Brokers, Deposit Taking Saccos, Deposit Taking Microfinance Institutions etc 

6.Corporate Finance Services

Davella’s Corporate Finance practice is one of the country’s leading financial advisers on public and private transactions. Our services include advice on:

.    Mergers and acquisitions

.    Business sales and disposals.

.    Public company and take-over advice

.    Floatation and initial public offerings.

.    Private equity and management buy-outs

.    Valuations, fairness opinions and appraisals

.    Project finance, public private partnerships and the private finance initiative

.    Debt-raising and restructuring advice

 

 7. Transaction Services

Transactions are a key component of today’s business world, creating a multitude of opportunities including the enhancement of shareholder value, restoration of organizational solvency, and raising the profile of your organization. Davella has a team of competent transaction professionals who provide transaction support throughout a transaction from pre-deal evaluation through to completion and post-deal integration or separation. We focus on helping our clients:

 i. to buy, sell and finance businesses

 ii. mergers

 iii. joint ventures 

 v. leveraged buy-outs (LBOs) and

 vi. Initial Public Offerings (IPOs).

8. Corporate Recovery & Restructuring

Going through a financial misfortune? We can help!  

We have experienced advisers who can help your business through this stressful time. We can minimize the impact of financial misfortune and help your business to recover, while securing the best achievable outcome for creditors and other stakeholders.

We provide a wide range of services to companies and their stakeholders. We focus on identifying and resolving issues affecting profitability, protecting enterprise value and facilitating a full recovery where possible. We are happy to take up varying assignments from financially robust companies seeking to acquire underperforming competitors, to distressed businesses requiring an urgent recovery solution.

What we offer:

a. Restructuring Services

Our highly focused approach is tailored to the situation facing the client be it an imminent cash crisis or more long-term causes of underperformance. We deploy a range of skills and services in the following areas:

.Cash management

.Refinancing

.Exit strategies

.Turnaround planning and implementation

 b. Work Out Arrangements

Davella experts can help lenders to better understand their current and future risks associated with providing debt and the critical business issues facing their customers. We are happy to facilitate discussions between groups of lenders, their customers and other key stakeholders during complex restructuring situations.

Our offerings under this include:

.Diagnostic reviews and liquidity analysis

.Assessment of restructuring proposals

.Debt structuring advice

.Insolvency and other fall back options

 c. Recovery

We advise stakeholders on the most appropriate option for helping them to maximize their recoveries. We are happy to take formal appointments as administrators, receiver managers or liquidators.