The Client:
A full-suite constructions company catering from design to execution of projects.
Scope of Work
Complete accounting services:
- Accounts payable & receivable
- Maintenance of general ledger and subsidiary ledgers
- Intercompany reconciliations
- Fixed assets accounting
- MIS reporting
- Budgeting
- Project Valuation
- Payroll and tax return preparation
Process Bottlenecks
Owing to large-scale operations and the absence of real-time accounting, the accounts department was dealing with delays and inaccuracies in payables processing. In addition, there were:
- Delayed project reporting and valuations, leading to poor cash inflow and delay in labor payouts
- Delayed compliance and statutory reporting leading to fines and penalties
Cogneesol’s Optimization Solution
A complete analysis of the operations revealed inefficiencies and non-value-add processes with exposure to inaccuracies and delays. We assigned an accounting team expert at turning around processes. They undertook the following steps;
- Prepared project-specific checklist to improve accurately processed invoices and to eliminate duplicates
- Introduced project-based accounting to improve allocation of funds, accuracy and timeliness of accounting. This helped in achieving accurate project valuations and enabled on-time progressive invoicing, leading to a healthy cash inflow
- Independently handled all compliance and statutory reporting to bring about overall compliance
Cogneesol has helped skim our processes, keep us fit and compliant. Our books of accounts have never been in such good shape. They work like our in-house team now.
Impact Delivered
The overarching diagnostics led by the Cogneesol team resulted in immediate and concrete benefits, chief amongst them being:
- Delay in invoice processing reduced from 10% to 0.05%
- Invoice accuracy increased from 90% to 99%; duplicate invoices reduced to nil
- DSO improved by 25% from 40 days to 30 days, increasing vendor satisfaction rate from 85% to 97%
- Complete statutory compliance leading to zero regulatory fines since last year
Client Testimonials
It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.
We used to suffer from huge volumes of duplicate invoices and missed vendor payments. Cogneesol streamlined our Accounts Payable process by centralizing data, eliminating data entry, and streamlining the invoice workflow. This has not only eliminated the problem of duplicate invoices but has also standardized the payment system and has regulated our working capital management, making us financially stronger and in-control of our operations.
We automated our Accounts Payable division with the help of Cogneesol’s team of qualified accountants. They came in with game-changing process improvements, including the elimination of data-entry errors with automated OCRs, the establishment of a ‘No PO No Pay’ policy, ensuring a system of timely payments, and elimination late fees. All of these have changed the face of our AP books. We are now in a great position to make strategic decisions.
Cogneesol increased our operational efficiency with timely payments and efficient management of our working capital. We are impressed with the dedication of the team and their professionalism. Most importantly, the team is professionally qualified and has the technical expertise to guide the accurate and compliant management of the payables process. Thanks to them, we have a non-manual AP function that functions seamlessly and has brought us significant cost savings.
We had a huge pile of outstanding receivables that had blocked huge amounts of cash. We hired Cogneesol to help clean up our account sand support, especially with the receivables. The team charted a collections plan, segregated receivables as per their DSOs, and allocated the collections to their team with set targets. It took the agents under two months to collect close to 90% of our receivables!
Cogneesol transformed our Accounts Receivables processes, freed up cash, and optimized our working capital position. The team does a thorough job of checking the accuracy of their bills, invoices, or credit terms, apply for cash payments correctly, do not override credit limits, follow up with customers in a timely manner when payments are past due, collect and apply cash correctly. These have made our Accounts Receivables position very efficient!
Our customer master data was in complete disarray, slowing down our receivables considerably. Cogneesol assigned us a dedicated resource to help with customer data maintenance and streamline all the other sub-processes of Accounts Receivables. The resource immediately set to task with correcting payment terms, centralizing data maintenance, implementing controls, and conducting regular audits. Soon we were able to do away with more than 80% of customer disputes!
