Kering

Challenges

Kering, a prominent global fashion retail brand, aimed to enhance the efficiency of its accounting operations in Thailand which comprised tasks such as managing accounts payable and administration, examining revenue department documents, and obtaining necessary approvals as per the corporate approval matrix. Other tasks that came under the agreement included uploading invoices to the online banking system, and ensuring monthly tax compliance.

Mazars in Thailand was enlisted for two primary reasons: Kering's previous partner had been named as it global auditor; and secondly Mazars’ European offices already had an established working rapport with the fashion powerhouse. Mazars in Thailand was entrusted with the responsibility of managing the accounting work for five prominent brands.

Solutions

Mazars in Thailand faced a significant stumbling block as it acted as the intermediary between Kering and the brand’s different finance teams. Close collaboration with two Kering shared service centers became crucial for Mazars in Thailand. One center, located in Malaysia, focused on ‘procure-to-pay’ processes, while the other, situated in Singapore, focused on ‘record to report’.

An additional obstacle arose when Mazars needed to utilize an ageing database system for approximately four months before transitioning the brands to SAP. This transition also involved changing the way employees handled certain backend processes. Mazars in Thailand worked closely with Kering to train approximately 250 store employees, which posed a challenge given the complexity of the system and the fact that the trainees were not accounting professionals. Nonetheless, Mazars' highly skilled team successfully worked through the data processing changeover.

Having effectively concluded the handover process, Mazars in Thailand will now provide support in preparing the statutory accounts and collaborate closely with the auditors to address any queries. Additionally, the local Mazars office assumes responsibility for preparing and submitting corporate income tax documentation. Given the magnitude and intricacy of the brands involved, the Mazars tax team is actively involved in this process. Furthermore, Mazars continues to offer ad-hoc services to the aforementioned fashion brands, such as delivering regulatory tax advisory services on various subjects. Mazars is also in a position to give localized advice to the brands such as requirements for opening and closing store fronts in Thailand.