Optimized Real Estate Accounting: Cogneesol Improved DSO by 41% and Vendor Satisfaction rate up to 97%

The Client:

A real-estate conglomerate that operates as a strategic partner and solution provider to select clients worldwide, with special emphasis on the Middle East, North Africa, Central Asia, and Turkey.

Scope of Work

Complete range of real estate accounting services including accounts payable, accounts receivable, maintenance of general ledger and subsidiary ledgers, month-end closure, fixed assets accounting, tenant schedules, and trust account reconciliation.

The Client

Process Bottlenecks

Owing to its size and scale, the organization faced a lag in its accounting processes owing to untrained staff. This further led to incorrect property allocation of collections and expenses. The processes fell behind best-in-class standards, and they lacked supervision to enforce and align processes. These led to:

  • Overdue financials of 60 days
  • Overdue service charge demand notices by 30 days
  • Tenant Payments schedule delay of 45 days
  • Unreconciled 4 Mn pound in the trust account
  • Delay in property owner payments by 60 days

Cogneesol’s Optimization Solution

Cogneesol’s accounting team examined and identified the gaps in operations that had led to the piling up of the numerous backlogs, introduced an operating model taking into account people skills and available technology. Specific policy changes were injected to:

  • Reclassify maintenance expenses with supporting documentation
  • Finalize optimal amount for service charge demand, prepare notices, and dispatch within a week
  • Redesign and improve customer inquiry, response timelines, and cash application process
  • Reconcile the trust account on a monthly basis

We reached out to Cogneesol for best-in-class operations. As promised, they turned us around within no time bringing about timeliness and compliance to our business. They now managed our accounts end-to-end without a hitch.

Impact Delivered

Working closely with the client’s accounting team we delivered the significant impact that included:

  • Backlog covered in 10 days
  • Month-end closure activity optimized by 5%
  • Service charge generation timeliness improved by 60% and maintained within agreed timelines
  • Improved cash flow, DSO reduced from 60 days to 35 days (41%) and customer satisfaction rating jumped from 84% to 98%
  • Reconciled Trust account and dues paid off to owners with vendor satisfaction rate climbing to 97% compared to 90% in the previous years

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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