Streamlining Finances through Outsourcing: A Conversation with Sectra Canada

Toronto-based Sectra Canada is a global medical imaging company subsidiary and has been transforming healthcare through advanced imaging software. 

They have experienced remarkable growth, expanding their customer base and team. 

But, managing their increasing financial complexities became a pressing concern.

Let’s look at the transformative impact when they outsourced their accounting operations with Novaa.

A Conversation Opportunity:

We talked to Nader Soltani, President of Sectra Canada, about their journey and the decision to outsource accounting. 

He provided valuable insights about how this move met their immediate needs and advanced their business.

The Decision to Outsource:

Sectra Canada encountered a finance crisis when three key members of their finance team, including the controller, left the company within a short period.

The need for dedicated accounting roles became clear.

Nader explained, “Outsourcing was the right choice given our tight timeline and the challenges of finding suitable in-house candidates.” 

Choosing Novaa:

Nader’s familiarity with Novaa and their comprehensive range of services made them an ideal fit for Sectra Canada’s accounting needs. 

Nader emphasized, “I had a relationship with Avi. There was a level of trust there, and I think what they had to offer was exactly what I was looking for.”

Novaa’s tax expertise and the availability of junior and senior accountants made them an ideal partner.

Addressing Initial Reservations:

Nader had concerns about Novaa’s understanding of their unique financial landscape. 

But Novaa displayed a deep commitment to understanding Sectra Canada’s business. 

Nader shared, “They invested time in quickly understanding our operations, which gave me confidence in their ability to handle our finances.”

How does Novaa help Sectra Canada?

As part of the outsourced accounting engagement, Novaa helps with several things including:

1. Internal movement of money: As a foreign-owned company, there was a lot of internal movement of money between buying software from Sweden and acting as a reseller in Canada. This required managing intercompany invoices and ensuring proper accounting for these transactions.

2. Payroll: As the Canadian team grew, there was a need to handle payroll for the employees.

3. Intercompany invoicing: With the company’s customer base growing in Canada, there was an increased need for issuing customer invoices, including managing intercompany invoicing.

4. Accounting rules: Some “tricky accounting rules” around IFRS 16 exist. Compliance with these rules was crucial for proper revenue recognition as the customer base and engagement with other companies within the organization grew.

5. Tax implications: With the complexity of the company’s operations and the involvement of intercompany transactions, various tax implications likely needed to be considered and properly accounted for.

The specific services delivered include:

​​1. Expense management: Novaa assists with submitting expenses by employees. They ensure that managers approve the expenses and then handle the accounting, categorization, and preparation of payouts for these expenses.

2. Payroll: Novaa handles the payroll for the company’s employees. This involves managing the calculation and distribution of salaries and handling any associated tax withholdings and deductions.

3. Tax services: Novaa provides tax services to the company. They prepare and file taxes, ensuring compliance with relevant tax regulations.

Impact and Results:

By leveraging Novaa’s accounting expertise, Sectra Canada experienced a seamless transition. 

Nader stated,  “Novaa quickly grasped our financial intricacies, ensuring a smooth handover of accounting responsibilities.” 

This enabled Nader and his team to focus on driving innovation and growth.

By seizing this opportunity, Sectra Canada prioritized their core business areas while entrusting their accounting needs to capable hands.