Nature of Business - Customer is a CFO, providing part time CFO services for over 6 years to clients who are in Software Development & Consulting Services Industry
Annual Turnover – USD 3 million
For privacy reasons, we do not disclose the identity of our direct client, so we shall call the direct client "CFO".
Challenges from customer point of view - This CFO has a client who was having challenges keeping up with their growth. An unprofessional accounting system was in place and perks of their accountant were very high. The client of the CFO are into Developing Software and providing consulting services to Microsoft and other direct customers. They were finding it difficult to do proper job costing for each project. The organization has 250+ Employees and it’s always difficult to calculate employee wise profitability when the Revenue and Expenses are not booked properly.
The company was looking for better accounting solutions and asked this CFO to take care of all their finance accounting work. In the first instance, it was a big move for the CFO as well because he knew that its not possible for himself to seat and do accounting when he has bunch of other clients, with whom his involvement is really strategic. It is also difficult to get an accountant with good knowledge at affordable cost in the local US market.
Resolutions
When the CFO came across the IBN website, he called for more details about our services. Our sales representative first gathered all the information from them to understand their actual requirements. Based on this requirement information, an internal brainstorm with operations team resulted into the sales team presenting the CFO a solution to their problems. Based on this proposed solution, the CFO decided to start working with IBN for back office accounting services in the year 2016 to get job costing done for the concerned client.
As a part of the process, CFO has started sharing the end-Client's Customer invoices, Payroll data and Purchase invoices on daily basis with IBN team via emails. The IBN back office team has started processing all these in a systematic manner in to the accounting system. For doing Job costing, first we have suggested the CFO to share the complete information regarding each Staff involvement on each project. The CFO was also instructed to keep IBN informed on instances when the end-client switches employee(s) from project to project.
Based on the Employees' and project data, IBN has set up the items in to the accounting systems and these items are properly linked to correct Revenue and Expense accounts for tracing the Job profitability in to the system. Each Customer invoice and Purchase invoice is processed by using the correct Items only and this leads to execute proper Job Costing system for their company efficiently.
It also simplifies the Employs Expense Claim process and enhance data validation with high quality for Reviewer process.
After 1 year serving this CFO for their end-client, the IBN team introduced "CFO Support Services" to this CFO and explained him what we do in those services with the help of ProfitCent analytical tool. CFO was impressed with our work but not 100% convinced about these services. Hence, it was decided to do 1 pilot process. He shared the required data with us and IBN back office team delivered high level projections with accuracy by using “ProfitCent.
The CFO is happy with our Accounting back office services as well as 'Assistance to CFO' / 'CFO support' services, According to him it’s a unique value addition offered by IBN Technologies as a part of their offshore outsourcing solutions.
Client is extremely happy and IBN is serving them since over past 2 years.
