Accounting Outsourcing Case Study – Global Software Corporation

Accounting Outsourcing Case Study

Background

• A global software company that processes an average of 5,000 AP invoices per month, 5,000 AR billings per month, and 4,000 orders per month
• Goal was to improve process efficiency, quality, and timeliness by moving from their in-house offshore shared service center to a fully outsourced service model
• Selected IQ BackOffice to perform several accounting processes, including Accounts Payable, Accounts Receivable, Order Management and Bank Reconciliations across all geographical market entities that cover Latin America, North America, Asia Pacific, Europe, Middle East, and Africa

Issues

• Moved existing processes to their Northeast Asia facility with poor results
• AP group only worked US evening hours despite requiring 24-Hour service coverage of all geographical markets
• Could not execute same-day processing of orders into the system to initiate the distribution process for revenue management
• Inconsistencies across personnel in how items were processed & lack of real-time visibility
• Needed to significantly reduce operational cost

Solution

• Reengineered and standardized AP, AR, and OM processes utilizing best practices to improve efficiency, visibility and controls; also implemented continuous process improvements and changes for the new accounting system
• IQ Backoffice provided 24/7 processing as needed and ensured that all geographical entities are covered through a multi-location operations strategy, including foreign language support in Mandarin
• IQ performed same-day processing of orders and provided real-time visibility into finance data for strategic management decisions
• IQ significantly reduced the client’s current operational cost approximately 44% annually, over $345,000