Our client’s senior management was seeking ways to handle their accounting department’s AP and AR functions in a more cost-effective, centralized, and efficient way.
- As a large-scale business, AP and AR functions were segregated and inefficiently spread out among multiple employees.
- Our client was in the costly situation of having more than 10 employees handling AP and AR.
- First, we transitioned knowledge functions from our client’s personnel to our staff. We assigned a POSI accounting manager along with two permanent and two support staff members during this stage to gather all information needed for a smooth transition. Transitioning knowledge is often met with employee friction. However, since our team is well trained in handling these situations, we were able to complete the knowledge transition process in two months.
- Initially, we followed the original process established by our client’s employees. This allowed us to become familiar with the flow of documents and information while processing operation software, accounting system, communication, and reporting workflows. Based on what we learned, our team could determine what processes could be eliminated, replaced, or improved.
- Our team set up an internal control procedure for AP, AR, and intercompany AP. A dedicated POSI manager was responsible for each function and served as a point of contact with client branches, customers, and vendors.
- Finally, we cross-trained POSI staff to ensure consistency, stability, and business continuity.
- The installation of strong internal controls resulted in superior work quality. Tasks were completed on time which resulted in timely reporting and responses to our clients, customers, and vendors.
- Ultimately, our client only needed two employees in their accounting department, which reduced costs significantly.
- Employee turnover risk was mitigated due to the business continuity that our services provided. We became our client’s partner and, in many ways, became an extension of their business.