Case Study 1
Client Profile
A large-size Community Management firm based in Atlanta, Georgia, managing over 1,100 Homeowners Associations (HOAs) with more than 200,000 units
Overview
SCOPE OF WORK
Review and approve invoices submitted by the community Managers. Verify accuracy by confirming the correct association, vendor, and remit address. Ensure that the invoice amount aligns with the budgeted GL codes and confirm sufficient funds in the designated bank account. The Accounts Payable Specialist is expected to efficiently process 200+ invoices daily.
CHALLENGES
High volume of Invoices: Efficiently managing a substantial volume of invoices daily proves to be a challenging task.
Budget Alignment: – Ensuring that invoice amounts align with budgeted GL codes requires thorough examination, which can be a time-consuming activity.
Cash Flow Challenges: Inconsistent AP processing disrupts effective cash flow management, posing hurdles for financial stability.
Accuracy – Invoices were inaccurately processed to the wrong GL, causing challenges for the accountant, and impacting the financial.
EXISTING SET-UP AND OHI ROLE
The existing set-up demands efficient time management skills from the Accounts Payable Specialist, given the substantial workload.
Close attention to details like accurately selecting a community, exact vendor (especially duplicate names), GL code verification (including historical checks), ensuring budget alignment with expenses, and checking other invoice information to prevent errors.
Checking for adequate funds in the relevant bank account before approval and notifying the manager in case of insufficient funds.
SOLUTION
Regular Training for Accounts Payable Specialist: Provide ongoing training for the Accounts Payable Specialist to enhance their skills in efficiently processing invoices. This includes staying updated on software tools, understanding budget codes, and mastering the automated systems in place.
Standardized Guidelines: Established a comprehensive step-by-step checklist and quality control tracking system to enhance accuracy and efficiency. Implemented a standardized approach to minimize errors and delays in processing a large volume of tasks.
Second Level Review: Implemented an additional layer of quality control for crucial vendors to detect errors early on before submission to the client.
Continuous Improvement: Activity incorporating client feedback on ongoing process enhancement.
Results
1
Outsourcing to India resulted in the elimination of any daily backlog, showcasing the team's ability to seamlessly handle and process tasks without accumulating pending work.
2
The Indian team maintains a daily Accounts Payable process tracker, conducts vendor reconciliation quarterly, and shares discrepancies in AP bi-weekly to ensure transparency in the process. Additionally, verifying the availability of sufficient funds in operating accounts before approval.
3
Cost-effective measures, streamlined processing, and heightened quality control efforts led to the significant allocation of the major AP portfolio to India.
4
Successful outsourcing of the AP process prompted the client to extend financial activities to India.
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