Manual Work Creating More Risk Of Errors
Less Visibility Into Data, Poor Auditing & Reporting
Inflated DSO and More Delinquent Accounts To Handle
The Solution – Maxyfi
Reduced Manual Processes By 40%
Increased Visibility With Real-time Data & Instant Reporting
Reduced DSO from 90 days to 45 days
Lucas Ebenezer, Chief Finance Officer. BOSSFIELD.
The accounting and finance team at BOSSFIELD was mostly doing all the data entry manually, using spreadsheets and other word-processing documents to track aging, and payments and manage accounts receivable overall.
All the data would be crunched and compiled into a network of spreadsheets, which made it quite difficult for the senior officials to gather insights for financial reporting. It was time-consuming and labor-intensive to get a single view by consolidating all the spreadsheets into one, thus making it hard for the financial board as well.
"The team was managing large amounts of data in spreadsheets and I could understand how hard it is to keep track of all the data, especially during critical times. Not being able to view all the data in one place, becomes a struggle for making informed decisions for the team and the board," says Lucas Ebenezer, Chief Finance Officer at BOSSFIELD.
What followed was another hurdle where they couldn't get an accurate forecast of the cash flow due to less visibility into the data, which meant poor audits and a weak reporting system.
Even communication and invoicing were done manually. There would be a few people on the team hired to write/type invoices and mail them out. One drawback of this process was that it wasn't efficient and regular, often time-consuming, and lacked the strong persuasion needed in a dunning mail.
Between managing the finance team, reconciling payments, and ensuring a streamlined cash flow and smooth customer experience, it seemed like a lot on the plate for Lucas. He and the team also had to make sure that the DSO is as low as possible and keep delinquent accounts at bay.
"With all the responsibilities in hand, it can be tedious to ensure that the collections are received on time and delinquent payments are made as quickly as possible by the clients respectively. Besides that, reducing the DSO was another challenge that we had to tackle."
To manage the AR/collections efficiently, they decided it was time they switched to an automation tool that would also provide them with accurate reporting and an effective follow-up system. With the business growing, it became even more time-consuming and complex to manage the accounts receivable using spreadsheets.
Hence, the search for a suitable tool that would meet all their concerns started. However, they couldn't find anything out there that would as much as nearly fit their requirements – except when Maxyfi came into the market.
"When I presented our needs to Maxyfi, never did I expect that this would be the solution which perfectly-acknowledged every requirement patiently and kept in touch with the team throughout the setup."
Shortly after integrating Maxyfi with their accounting books, in their case – Excel spreadsheets, they were able to get an overview of all their accounts receivable data on the software's real-time dashboard.
The team has stopped using spreadsheets and manual tracking since they can view all the metrics and generate instant reports in one place. It has now become much simpler for them to perform auditing and assist the higher officials in informed decision-making and financial planning.
Maxyfi allowed BOSSFIELD to reduce 40% of their manual work by automating most of the repetitive tasks and providing increased visibility and transparency into the AR/collection process.
It has also made it efficient to collaborate with the team on one cloud platform and monitor all the collection activities easily, ensuring that they comply with the company credit policies. The software saved a lot of time for Lucas and the team as well, improving work productivity and allowing them to work on other strategic activities better.
Lucas and the team have now been able to focus on high-priority accounts, especially delinquent accounts and top debtors, with the help of Maxyfi. Equipped with industry-leading collection methods and a rigid follow-up system, they have reduced the DSO from 90 days to 45 days, which resulted in an increased cash flow growth of 30%.