The Challenge
Yala Knit & Crafts is a manufacturing business based in Kathmandu, producing high-quality hand-knitted and craft items for domestic and international markets. Founded in the 1990s, the company ran traditionally — skilled artisans, manual record-keeping, and processes that worked when the company was small but became unmanageable as growth accelerated.
By 2017–2018, internal systems were actively blocking growth. All financial records existed on paper — ledgers, receipts, invoices stored in boxes. Auditors needed documentation from six months ago? Someone dug through physical files. No way to track which products were profitable (a hand-knitted sweater and a basic craft item might sell at similar prices but require vastly different labor and materials). Inventory was managed informally. Payroll for artisans had no digital trail. As the business attracted attention from tax authorities, the absence of proper records had become a legal risk. Growth was being held back not by market demand, but by the inability to run a modern business.
What Vishal Did
- Digitized all historical records — 5+ years of paper records entered into the system
- Implemented ERPNext accounting — complete chart of accounts and cost tracking
- Set up payroll module — automated employee records and Nepal compliance
- Trained staff on the new system — full handover, not just setup and leave
- Built product-level cost tracking — finally understood which products made money
The Results
- 5 years of paper records digitized — no more searching through boxes
- Full ERPNext rollout — accounting, payroll, and inventory in one system
- Product profitability visibility — knew for the first time which items were worth making
- Payroll and accounting integrated — hours of manual work eliminated
- Audit-ready records — Nepal tax and compliance requirements met
- Foundation for scaling — system built to grow with the business
The Impact
Yala Knit & Crafts went from paper and chaos to a modern, digital business. Administrative work that used to take days now takes hours. Financial reports that required digging through files now appear with a click. Audits went from stressful to straightforward. Most importantly, the business now has the visibility to make smarter decisions: what to produce, what to charge, and where to grow next.