Case Study – Professional Services Firm
Commencement Date:
October 2014
Background prior to
smartAR:
This client met with us at a conference in 2014. Being a professional services firm,
there are 4 partners, with no one person who was responsible for the debtor
chasing process. The debtor chasing process was not working for all 4 partners,
and it was not the best use of their time.
The average debtor days (time between invoice and banking) was nearly 60 days.
The client wanted to reduce this and have one person who could take care of all
of the contact. The clients main reservation had to do with outsourcing this
component to an outside provider.
Outcome:
A careful assessment was done of the client needs and an experienced account
manager was appointed in November 2014. The initial target was to achieve
consistency and reduce the average debtor days.
Client Debtors
Using a very considerate & personal approach, the account manager reduced the
initial total debtors by a massive $537,023.86 over the first 18 month period. This
business remains a delighted client of smartAR today.
Outstanding Debtor $’s
Turnover: $3,600,000.00
900,000.00
800,000.00
700,000.00
600,000.00
500,000.00
400,000.00
300,000.00
200,000.00
100,000.00
-
Historic Debtor Days
60 Days - $ 797,837.86
Debtors 18 months Later
29 Days - $ 260,814.00
Missing Cash Returned
$537,023.86