Accounting Operations for a Property Management company

The Client

A property management company specializing exclusively in the management of purpose built blocks of flats, converted houses and residential estates. The company manages residential units in and around London and the south coast of the UK.

Process Outsourced

Finance & Accounting functions including Bank Reconciliation, Credit Control, Accounts Payables and Service Charge Accounting.

Methodology

Our team of consultants carried out an in-depth onsite study of the client's business to determine the scope of outsourcing. The documented the client's existing processes and developed detailed "As-Is" process maps.

The next step was to re-engineer / optimize the existing processes and work out a migration plan using our six sigma based migration toolkit. Processes identified for outsourcing and their in-scope activities included:

• Credit Control
  • Accounts Receivable follow-up and provisioning for doubtful debts (chase lessees through email, phone calls, fax and chaser letters)
• Service Charge Accounting
  • Audit of income and expenditure
  • Provisioning of outstanding and accrued income
• Accounts Payables
  • Processing of vendor invoices
• Bank Reconciliation
  • Reconciliation of common and receipts accounts
  • Closing lost properties

At the same time our technology team devised a mechanism for connecting to the client's property management software application. We also put in place a Document Management System to facilitate seamless transfer of documents and information between ourselves and the client.

The Benefits

The benefits for the client derived from the initiative are as follows:

• 47% savings in operational costs

• Well defined Service Levels put in place to track performance levels and gauge process / staff efficiency

• Defined policies and procedures to help management exercise better control

• Introduced several operational efficiencies
  • No late payments and no charges in Accounts Payables
  • Separate list of bounced checks to track defaulters
  • Setup of internal system to preven duplicate payments
  • Timely reconciliation of bank statements
  • Separate chasing of un-cleared items