Accys services will positively impact Revenues , Profit and Cash Flow

Case study of a specific customer


The following is a case study for accounts receivables activity conducted by us for one of our clients:
One of our clients has a yearly turnover of around Rupees 8,000 million and raised about 1,250 invoices a month on around 450 clients.
Further, our client performed additional services for our client and raised debit notes on their clients for the additional services provided.
Our client operated on very thin margins and it was very necessary for the client to ensure that they got paid within the due date for payment so as to avoid interest cost and delinquencies.
The client had an internal Accounts Receivables team. However, the team was always busy with additional activities and their focus was always on collecting the larger amounts from bigger clients and on collecting the current month’s receivables. As a result, the previous month’s outstanding got ignored – also if they got busy with a specific activity of a bigger client – the follows up with their other clients would not happen.
Accys approached the client to manage their accounts receivables activities. On taking over some of their clients and commencing the normal Accys Accounts Receivables Management Process, we identified the following issues:

  1. Some of our client’s customers were not receiving their invoices on time.
  2. Some customers did not receive their invoices at all.
  3. Invoices were being dispatched to the wrong addresses - due to typo errors or change of address etc.
  4. Invoice were being sent to the wrong coordinators/ concerned person etc
  5. Invoice amount did not match with the services availed
  6. While following up with some customers, we found that some customers did not have the sufficient funds to make payments for the current month - customers wanted a moratorium on payments
  7. The customer would want to delay the payment by making excuses such as “the concerned person has not approved the invoice”, “the signatory is travelling” etc.
  8. Customers wanted a revision in the invoices and that had not been done
  9. Customers had closed the business and did not have the funds to pay, but still continued using the product and the service.
  10. The customer's accounts were not reconciled and even though they had paid the payments were not reflecting in their ledger account
  11. Debit notes raised by our clients were not received and therefore not accounted for by the customers
  12. Invoices were not accepted by the customers due to miscellaneous reasons - such as unhappy with the service, promises not met, service delivery incomplete etc
  13. Specific requirements of the customers at the time of invoicing not taken care - clients wanted the invoice to be in different format.
  14. Service issues informed by the customers but no action has been taken on them, so the payment was held
  15. The customer database of our client was not maintained on timely basis
  16. Customer's one point of contact has not been provided and therefore our client did not know whom to follow up with for the payment.
  17. Our client was not able to collect their TDS and withholding tax certificates and C and F forms from their customers, leading to unnecessary revenue losses

The Accys Accounts Receivables Management System provided the following solution to the client: