Streamlining Credit Control and Accounts Receivable for Leading Recruitment Business
The client is one of the largest and fastest growing companies in the recruitment industry. Our client’s previous engagement for credit control, end-to-end payroll, accounts receivable, accounts payable and management accounts was via an onshore shared service model.
As a rapidly expanding company, the client wanted to build a plug-and-play model to easily integrate services for newly acquired brands. In addition, the client was also looking to increase efficiency by pushing the limits on existing KPIs as well as reducing its finance and accounting costs.
How QX Helped
Established an offshore credit control team to work closely with client’s onshore team (manager operations and manager credit control). The team also introduced defined processes to understand end-client behavior to learn the pattern and/or insights towards building up the knowledge base.
Defined and agreed upon an escalation matrix with the client and enabled challenging of existing KPIs to improve efficiency.
Developed tools to automate downloading and posting payments for the bank team and implemented standard templates for chasers.
Stabilised the process, making it easy to add any new business to the process as simple as ‘Plug and Play’ − allowing the client to focus fully on business expansion.
Improved business metrics by process improvement and standardization, resulting in reduction in both in DSO (Days Sales Outstanding) and unbilled amount
Achieved more than 100% of the year-end cash balance target
Reduction in unallocated cash on direct ledgers
Number of unmatched sales bills reduced by more than half
Drastic reduction in unallocated cash on self-bill and intercompany accounts
More than 85% reduction in suspense balance
90+ aged debt of ledger balance reduced by more than half