Location: Ft. Worth, Texas

Accounting Services: Accounting and Bookkeeping, Tax Planning & Preparation, and Consulting

Client: Monster Factory USA Inc

Client Overview: Monster Factory USA Inc is an online retailer of recreational collectibles, specifically Volkswagen memorabilia. The Company distributes its products through its own website and through Amazon.com, under FBA arrangement, which is substantially a consignment arrangement. The Company uses Quickbooks Online as its financial reporting tool.


During the first quarter of 2017, Monster Factory USA Inc employed Findlay CPA to bring their 2016 general ledger up-to-date. Three major challenges were disclosed after examination of their general ledger:

  • Improper Revenue Recognition – Although the Amazon FBA arrangement was substantially a consignment arrangement, revenue was incorrectly recognized as and when shipments were made to Amazon, resulting in the over-statement of the revenues accumulated in 2015 and 2016. As a result of this:
    • Accounts receivables were overstated; the end of year inventory and cost of goods sold for the years ended December 31, 2015 and 2016 were incorrect.
    • Net income for the years ended December 31, 2015 and 2016 were overstated.
  • Improper Recording of Accounts Receivable Collections – There were numerous instances where accounts receivable payments were recorded as product sale incomes resulting in duplication of revenue transactions during the year end December 31, 2016.
  • Improper Cut-Off – A 2014 expense item of approximately $200,000 was recorded as a 2016 expense. As a result, the Company’s net operating loss for the year ending December 31, 2014, which could have been used to reduce income taxes in 2015, was understated by approximately $200,000. This is important as the company reported taxable income in excess of $275,000 in its 2015 federal income tax returns and paid a significant amount of taxes.
  • We also identified various other non-Amazon payments and deposits that were duplicated or omitted from the general ledger, and numerous instances where customer balances that were known to be uncollectible were included in account receivables instead of bad debts.


Findlay CPA employed a two-prong strategy aimed at 

(i) minimizing the Company’s income tax burden and 

(ii) properly stating the general ledger balances for the years ended December 31, 2014 through 2016.

To this end, we examined the accuracy and cut-off of all revenue transactions, including Amazon related transactions for the period January 1, 2015 through till December 31, 2016 and made the necessary corrections, so that the revenue for 2015 and 2016 was appropriately recognized and accurately measured. We also corrected the year end inventory and cost of goods sold. We wrote off uncollectible customer balances and removed all fictitious and duplicated invoices and customer payments from the accounts receivable sub-ledger.

In order to ensure the propriety of revenue recognition going forward, we trained the Company personnel how to document and track shipments to Amazon using Quickbooks Online non-posting transactions. Additionally, we amended the Company’s 2014 income tax returns so that the 2014 net operating loss became available for use in future tax years. We also amended the company’s 2015 federal income tax return.


  • Net operating losses from 2014 were harvested to reduce 2015 tax liability to less than $3,000, which represents less than five percent (5%) of the liability originally reported.
  • The Company’s financial information is now accurate, complete and recorded in the proper periods.
  • Management can confidently use the Company’s financial statement to monitor the Company’s financial situation.

What people say about us

Ron Peddicord

I am extremely pleased to have Findlay CPA on our team. It is a joy to have a good accountant working with us and caring about the work they do - just wanted to say Thank You.

Chance Lauer

Findlay CPA'S customer service,response time, and amazing work ethic are hands down the best that we've had the pleasure of working with. Cas at Findlay CPA is able to dive into businesses she's never seen, find the problems, and help implement processes to keep them in order. She will have our business as long as she is open!

Lisa Tinsley

Best experience I have ever had with a CPA. We have always run our own business and having a CPA you can count on and trust is absolutely one of the most important things you can do to be successful. Cas and her team are absolutely the best!

Linda Hentz

My business was backed into a corner when our previous bookkeeper disappered about 3 weeks before extended tax filing deadline! A friend introduced me to Cas at Findlay CPA.She skillfully came in and picked up all the pieces to put our books together in time for filing. Findlay CPA is very efficient and trustworthy.

Theresa De Casas

I have worked with Cas for about 9 years. Working with Cas has been a great experience especially when she would keeps us informed of any new GAAP regulation that would affect our Hospitality business here Hof’s Hut Restaurants Inc. I consider Cas as a mentor who always help me to stay ahead of the game of new GAAP regulations and was very good in explaining the details of the changes and making sure that our books were in compliance. Cas is a Great,knowledgeable person to work with.

Candace Mozingo

Cas is amazing! She saved me this year, as I'd put off doing my taxes until April 8th. . . I think that's when we met. LOL. She managed to get it done in time, even though she had at first stated we'd need to file an extension. We filed as of about 10:30pm last night & that right there shows how dedicated she is to being there for you & getting the job done in a timely manner. She definitely has a sense of urgency & yet is still very friendly & super easy to talk to. I'm already setting up a quarterly payment plan with her for 2019. Having trust in her puts my mind at ease & I look forward to working with her for many years to come. Thank you, Cas!

Sumit Vatsal

Wonderful to work with Cas, hope to continue this business relationship for very long.

Karen Vasquez O'Donnell

Great customer service!

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