The Customer
A leading US-based distributor of industrial piping systems partnered with Flatworld Solutions to streamline its high-volume financial operations. With 60 years in the market and 60 branches nationwide, the client serves multiple industries with applications in fluid filtration, ultra-purity systems, corrosion-resistant infrastructure, and FRP machinery.
Despite its deep expertise and strong industry presence, the company faced mounting pressure on its Accounts Payable (AP) and Accounts Receivable (AR) workflows due to rapid business expansion. The growing complexity of financial processing across multiple platforms and locations prompted the need for specialized support to maintain operational accuracy and efficiency.
The Challenge
The client faced mounting challenges in managing its AP and AR functions across various departments and technology platforms. With daily transaction volumes running into the hundreds and limited internal capacity to scale quickly, operational backlogs and financial inefficiencies began to surface.
Invoice Management
- Up to 200 daily invoices need error resolution via the Parking Lot system.
- An additional 100 to 150 invoices required accurate classification through the PNC Portal.
- Around 200 to 250 invoices were manually processed through the BNR Report.
Vendor Management
- Approximately 10 to 15 vendor management emails were received daily
- Emails involved onboarding and clarification queries
Payment Processing
- Around 120 to 140 payments were matched daily through the Billtrust Cash App against provided remittances.
- Between 500 and 600 payments had to be posted to customer accounts daily in Prelude.
Customer Support and Follow-Up
- About 250-300 invoices require daily follow-up to ensure timely payment collection.
- Around 10 to 15 credit reference requests arrived each day and needed to be prioritized.
- An estimated 100 to 150 customer inquiries were managed daily.
- Short payment discrepancies involving tax, freight, or discounts needed daily red-letter issuance.
Sales Tax Dispute Handling
- Around 25 to 30 sales tax dispute-related emails were processed daily.
- These emails involved certificate validation and account reclassification.
These cumulative demands highlighted the need for a structured, scalable financial process that would both ease the internal burden and ensure precision in reporting, reconciliation, and compliance.
The Solution
Flatworld Solutions implemented a customized and scalable Accounts Payable and Accounts Receivable support model. This model brought control, efficiency, and continuity to the client's financial processes. The engagement began with a single bookkeeper and rapidly expanded in response to the client's increasing M&A activity and transaction volume.
Vendor Invoice Review & Correction: All incoming invoices were subjected to a daily discrepancy check. Errors were addressed and corrected, with 98% of issues resolved without escalation.
- Vendor Invoice Review & Correction: All incoming invoices were subjected to a daily discrepancy check. Errors were addressed and corrected, with 98% of issues resolved without escalation.
- Invoice Processing & Categorization: Flatworld’s team processed between 200 and 220 invoices daily and completed classification tasks within 4 to 5 hours while maintaining high standards of accuracy.
- Vendor Management Support: Regularly, 10 to 15 emails with references to vendors guaranteed their quick onboarding and addressing of their issues, helping to maintain a stable vendor-related ecosystem.
To strengthen the client's financial operations, Flatworld implemented comprehensive AR solutions including remittance matching, payment posting, follow-up processes, and sales tax support.
- Remittance Matching & Payment Posting: The daily data was aligned with the remittance data of 120 to 140 payments through a systematic remittance matching process. Additionally, 500 to 600 customer payments were recorded daily, with the account details provided in real-time.
- AR Follow-Up & Account Monitoring: The team actively monitored and followed up on 250 to 300 invoices/accounts daily. Any discrepancies discovered were escalated to the relevant credit or sales personnel for rapid resolution.
- Discrepancy Handling & Red Letter Issuance: Short payment issues due to tax, freight, or discount variances were identified and addressed by issuing red letters. Adjustments were then recorded in the respective accounts to maintain ledger accuracy.
- Sales Tax Support: A dedicated workflow was established to manage 25 to 30 daily emails related to sales tax disputes. Tasks included certificate validation and appropriate account reclassification.
- Customer and Credit Support: Around 100 to 150 daily customer inquiries were handled promptly. Additionally, 10 to 15 credit reference requests were managed with priority to support timely decision-making.
The Result
Flatworld Solutions’ partnership enabled the client to overcome critical backlogs and scale financial operations seamlessly. The Lean Six Sigma-based processes implemented brought structure, clarity, and improved turnaround across key functions:
- Administrative Workload Reduction: The Flatworld team absorbed a high percentage of invoice and payment processing work, allowing internal teams to focus on strategic finance activities.
- Faster Processing Cycles: The day-to-day processing targets were consistently met, resulting in no waiting time and minimal likelihood of system bottlenecks.
- Accurate Reporting & Reconciliation: Real-time accounts visibility and accurate matching of remittances provided a massive boost in both the cash application and reconciliation efforts.
- Gap Closure in Capacity: The flexibility provided by Flatworld allowed overcoming the disparity between the internal capacities and the increasing amount of transactions, particularly in times of strong growth, motivated by M&A.
- Improved Customer Account Transparency: Timely and proper posting of payments assisted in bringing better transparency to both internal and external parties.
The customer now has their financial operations taken care of by a team that can keep up with business growth, resolve payment challenges with minimal effort, and at the same time, ensure accuracy of core financial metrics.
Delivering Scalable Financial Operations with Accuracy and Speed
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USA
Flatworld Solutions
116 Village Blvd, Suite 200, Princeton, NJ 08540
PHILIPPINES
Aeon Towers, J.P. Laurel Avenue, Bajada, Davao 8000
KSS Building, Buhangin Road Cor Olive Street, Davao City 8000
INDIA
Survey No.11, 3rd Floor, Indraprastha, Gubbi Cross, 81,
Hennur Bagalur Main Rd, Kuvempu Layout, Kothanur, Bengaluru, Karnataka 560077
