Nature of Business - Customer is the leading Florida based CFO providing his virtual CFO services to Business like Leasing & Equipment Renting over 2 years.
Annual Turnover – 0.5 million
For privacy reasons, we are not permitted to disclose the identity of our client, so we shall call it CFO.
Challenges from customer point of view -CFO was having issue with his one of the client A/P department, as they were not able to produce him proper data on time and CFO is not able to make the correct Cash flow forecast as per requirement and it results in to a big cash crunch and heavy late fees penalties for his customer. Also not able to get funding’s from Bank. So CFO has suggested to his client to outsource the services and it will also cut down your current A/P department cost as currently each week hundreds of invoices would arrive in the Client A/P mailroom to be processed. Five employees would manually remove the contents of the envelopes, flatten each page, remove nonessential information, insert separator sheets and write a cover sheet that would tell the next person in line where to scan the documents. Next, two additional employees would review the information, make copies of oversized documents, and then complete the scanning. Even though this invoice processing system worked, it was slow and required eight full-time employees.
CFO has started searching on web and he come across IBN web site posted request for call. IBN sales team made presentation on the process CFO like it and we have started AP & Back office accounting services along with Assistance to CFO services which are provided with the help of ProfitCent analytical report tool.
Resolutions
In September 2017, Client began using an IBN A/P process to tackle its invoice processing needs. Now, when an invoice arrives in the mail the envelope is opened by three employees, the contents are removed and he just a scanned it and email to IBN A/P process. The scanned documents are then classified, the contents are validated, and the rest of the A/P team process it in accounting software.
“Client process around 0.5 million invoices per year, IBN has reduced paper consumption by 38 percent and email use for invoices has gone up 62 percent. Best of all, Client reduced the labor time for processing these invoices by 65 percent. Three employees manage the system and the other five are now able to work on other activities,”
Another aspect of A/P that is often overlooked is records retention. It is important to make sure that all data is captured and organized as efficiently as possible so auditors can review and analyze information quickly and easily.
CFO manage to generate funding’s for the client on time and Cash forecast projections are so accurate to avoid late fees and heavy penalties.
CFO has decided to use our Assistance to CFO services for his other client business as well. It was a right move by him which results in to saving his time and money and his staff is now involved in acquiring new business rather than doing back end analytical job.
Client is happy and IBN is serving them past 1 years.
