The Client:
A real estate investment firm that specializes in acquiring and developing multifamily properties.
Scope of Work
Complete Support With:
Bookkeeping Services (on an accrual basis) that include includes accounts payable, accounts receivable, maintenance of general ledger and subsidiary ledgers, intercompany reconciliations, fixed assets accounting, and MIS reporting.
Process Bottlenecks
In the absence of adequate internal controls and defined policies, the accounting operations suffered from a number of process shortcomings, chief among them being:
- Unorganized data management over emails, scanned documents
- Process gaps leading to duplicate and inaccurate postings
- Inability to address and resolve project conflicts
- Inaccurate project progress and valuation reports
- Delay in asset processing due to inaccurate historical data for acquisitions and disposals
Cogneesol’s Optimization Solution
Deep due diligence revealed that the company’s internal controls had not been able to keep pace with the spurt in its business activities. The need of the hour was to put in place sturdy controls and processes that would not only course correct but also bring agility and flexibility to the operations. With this aim in view, our team introduced the following changes:
- Redesigning document management and naming conventions, created folders on the Dropbox, and categorized existing data per portfolios to bring about organized document management
- Introduced BASECAMP to classify, address and resolve project issues separately
- Introduced project accounting and redesigned reporting process providing accurate numbers for projects valuation and WIP projects
- Consolidated historical acquisitions and dispositions data to compute capital gain/ loss
Thanks to Cogneesol’s assessment and correct diagnosis of our operations, we have been able to establish higher sales. Accurate reporting has enabled us to purchase new portfolios with confidence.
Impact Delivered
Cogneesol’s swift diagnosis and redesigning of process flows with inbuilt controls for accuracy and compliance brought immediate results:
- Error rate, @ 20% previously, reduced to zero bringing about 100% quality controls
- Progressive invoicing closure time reduced by 10%
- Asset processing timeline delay reduced from 20% to nil (processed within agreed 5 days of notification)
- Asset processing accuracy taken to 100% as compared to 90% in the previous FY
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 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!
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.
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!
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.
