A mid-size real estate firm in Miami, Florida. The company manages over $300 million of real estate, over 4500 apartments and have been appointed receivers on over 15 properties.
Accounts receivable function of an accounting department forms the backbone of a company. It has a direct impact on the cash flow of the organization. As such for Real Estate and Property Management companies processing monthly rents of tenants is a must and an important activity.
The client has a large portfolio (5400 units) of properties and had an issue of accountants moving in and out of the company, which was proving to be a headache for the owners as timely processing of rents were often delayed. To get off the burden of regular hiring, reduce costs and improve timely processing of accounts receivable activities, the client decided to use a hybrid solution where a team of accountants were engaged from OHI and a couple of Senior Accountant in US were retained to manage and oversee the process.
The first step in the entire process was to understand and document the existing process. Detailed interviews were done with client personnel, at the start of the engagement based on which the entire process was documented. Process Gaps and strengths in existing procedures were identified. A team of two Accounts Receivable Specialists were allotted to this process. Specifically,
The Indian team was processing the entire monthly accounts receivable receipts from India within two months of commencement of process. This was 4 weeks ahead of schedule
The team in India maintains a daily tracking and weekly issue sheet to resolve discrepancies and create transparency in the process. This has also helped in processing rent receipts on a daily basis
Apart for the cost savings, the entire management of AR function is now the responsibility of Indian end, thereby freeing up significant management time at US end
Due to the success of the AR process, the client has transitioned most of the property accounting activities to India. The AR team has also now been expanded to cover AR responsibilities of newly acquired properties
If you are interested in knowing more about how OHI can help your organization, please email us at firstname.lastname@example.org/
email@example.com or call us at +1-646-367-8976 (US) /
+44 20360 83041 (UK) /
91-11-26475715 (India). We can also provide a cost-benefit analysis customized for your organization.