Transformed Accounting Workflow: Cogneesol Success' in Delivering 100% Invoice Processing Accuracy and Improved Efficiency

The Client:

A Saudi Arabia-based motorcycles and accessories organization offering riding enthusiasts the complete experience of good rides.

Scope of Work

Complete Support With:

  • Accounts Receivable
  • General Ledger
  • Month-end Closure
  • Inventory Accounting
  • Payroll Records
The Client:

Process Bottlenecks

The client was unable to manage its invoice to cash processes in line with sound accounting principles. As a result, there was a revenue data mismatch with the sales channel, Shopify. This affected the accuracy of invoicing as well as cash application and cash management.

Additionally, the Payables process lacked standard invoicing formats that led to inefficiencies in vendor invoice processing. There were:

  • Outstanding vendor payment of more than 45 days
  • Unreconciled cash of up to 3 Mn USD
  • Improper categorization of general ledger

Cogneesol’s Optimization Solution

Our experience in delivering accounting services across industries gives us a competitive edge in re-modeling processes and streamlining operations. Backed by the strength of this experience, our team worked with the Sales channel to remap sales lines, correct GL classifications, identify items requiring manual adjustments.

Further, the team put in place the following changes:

  • Triggered weekly sales reconciliation based on statements issued by Shopify
  • Redesigned vendor document management process and consolidated vendor data in one file format using dedicated staff, worked with the client’s payables team to prioritize vendor payables based on credit terms and balance outstanding
  • Dedicated staff deployed for weekly reconciliation with vendors to ensure vendor satisfaction

Thanks to Cogneesol, we have been at the best-ever operating levels currently. They have made our processes strong, steady and have given us a lot of agility.

Impact Delivered

The above-mentioned corrective actions and process re-modeling resulted in:

  • 100% invoice processing accuracy
  • 99.5% cash application timeliness
  • Vendor payments clearance within 15 days, increasing and maintaining vendor satisfaction rate from 89% to 98%
  • Reconciled cash accounts in 15 days; 100% accuracy and TAT for clearing accounts
  • 99% allocation accuracy and timeliness

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.

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