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Enabling Process-Driven Financial and Accounting Operations for a UK Luxury Holiday Park Company

CASE STUDY:

Enabling Process-Driven Financial and Accounting Operations for a UK Luxury Holiday Park Company

The client is a leading developer and manager of luxury holiday parks in the UK, offering high-end self-catering accommodations. The company operates a portfolio of several parks, providing a premium experience to holidaymakers. The business model is complex, involving multiple revenue streams from rentals, caravan ownership, and ancillary services, necessitating a robust and efficient financial management system. Effective accounting for hospitality is crucial to manage these intricacies and ensure financial accuracy.

Key Challenges

  • AP Backlog Reduction: The company had 395 overdue invoices, causing expense misclassification and inaccurate P&L statements. 
  • Bank Reconciliation Issues: Open bank reconciliation items increased from 11 to 95 across six parks and 71 for one holding entity, affecting cash flow visibility. 
  • Inconsistent Management Accounts Format: Six different formats for management accounts led to inconsistencies and difficulty in consolidating financial data. 
  • Incomplete Chart of Accounts (COA) Mapping: 669 accounts required detailed mapping to ensure accurate financial reporting. 
  • Lack of Scheduled Balance Sheet Reconciliation: Absence of a reconciliation schedule led to inconsistencies in asset depreciation and GL accuracy. 
  • ERP Migration from Xero to Iplicit: Transition was complicated by discrepancies in trial balances and GL reconciliations. 

How QX Helped?

  • AP Efficiency: Slashed AP backlog by 44%, reducing from 395 to 44 invoices, and enhanced P&L accuracy through standardized expense coding. 
  • Bank Reconciliation: Instituted daily reconciliations, minimizing open items and boosting cash flow visibility. 
  • Management Accounts Clarity: Standardized formats across accounts, heightening financial decision-making clarity. 
  • COA Visibility: Mapped 669 accounts, enhancing strategic revenue and expense insights. 
  • Balance Sheet Accuracy: Enforced regular reconciliations to maintain precise financial records. 
  • ERP Transition Support: Facilitated ERP migration from Xero to Iplicit, ensuring accurate GL reconciliations and COA mappings.

Benefits Delivered

  • Cleared a total of 395 invoices, improving P&L accuracy with an average monthly volume of 1000 invoices.
  • Maintained 99% accuracy in processing 500-600 invoices monthly, ensuring reliable financial operations.
  • Daily reconciliations eliminated open items, providing immediate cash position visibility.
  • Streamlined six report formats into one for clearer decision-making.
  • Mapped 700 accounts for enhanced report precision, supporting data-driven decisions.
  • Regular reconciliations ensured accurate GL accounts, solidifying financial reporting.

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