Client Snapshot
Industry:
Real Estate Development and Construction
Location:
Vancouver, Canada
Client Type:
Mid-market construction firm focused on high-rise concrete residential development
Service Scope:
Accounts Payable outsourcing (3-way match, invoice entry, vendor reconciliation, AP reporting); disbursements retained onshore
Key Highlights
Cost Savings:
45% ongoing reduction in AP cost structure
Cycle Time:
Same-day turnaround for invoice processing
Accuracy:
99.7% accuracy at scale
Throughput:
125 invoices per FTE per day
Client Background
The client is a well-known mid-market real estate development and construction company based in Vancouver, with strong expertise in high-rise concrete residential projects. Their Accounts Payable process was centralized but heavily manual and paper-driven, leading to high processing time, non-linear workflows, and approval delays across multiple construction sites.
The client engaged OHI to reduce costs, improve AP process flow, and create a flexible staffing model—without compromising construction-specific accounting requirements such as holdbacks, commitment invoices, and multi-tax code handling.
Business Challenge
A paper-based AP process across multiple job sites created approval delays, documentation gaps, and high cycle times.
Paper-Driven, Site-Dependent Workflows
Invoices, packing slips, and purchase orders moved slowly from sites to accounting, delaying matching, approvals, and processing.
Complex Approval Process and Document Tracing
Approvals were non-linear and dependent on tracing documents across multiple stakeholders, creating queue build-up and skewed workloads.
Limited Process Documentation
Expense allocation rules, PO matching practices, and job-costing norms were not well documented, increasing variability and rework risk.
Construction Accounting Complexity
Commitment contracts, progressive invoicing, holdbacks/retainage, and GST/PST required domain-specific handling beyond generic AP.
Portfolio growth made manual follow-ups and reviewer-dependent execution harder to sustain each month. Without standardized workflows and distributed review capacity, close timelines and audit readiness were at risk. A scalable model with compliance-first controls was required to expand delivery without compromising accuracy.
OHI's Approach & Solution
Process Documentation and Re-Engineering
- Extensive process documentation and re-engineering to address gaps from the paper-driven AP process.
- Developed process maps, operating procedures, and checklists due to lack of existing documentation.
- Documented construction AP concepts and rules (commitment invoices, holdbacks, GST/PST, indirect/overhead allocation).
Technology Enablement and Workflow Digitization
- Selected a document management + workflow tool to automate approvals, index scanned images, and export into Timberline.
- Ran a pilot with gradual invoice scale-up and tracked KPIs (processing speed, accuracy) to prove the solution.
Training and Change Adoption
- Trained the India team on software, construction accounting norms, and company practices.
- Trained the Canadian team/site managers on digital execution (PDFs, scanning, communication formats, document prep).
Execution and Stabilization
- Performed three-way matching using scanned invoices, packing slips, POs, and rental contracts before entry.
- Iterated on steps to reduce processing time, then scaled successfully after ~2 months of pilot validation.
Results & Impact
| KPI | Before OHI | After OHI | Improvement |
|---|---|---|---|
| AP Cost Structure | Higher ongoing AP processing costs | Outsourced, standardized AP delivery | 45% cost savings |
| Held Invoices Backlog | High volume held for approvals/coding | Improved workflow visibility and follow-ups | 50% reduction |
| Turnaround Time | Delayed processing due to paper flow and approvals | Same-day invoice processing | Faster cycle time |
| Accuracy | Higher error and rework risk | High-accuracy standardized processing | 99.7% accuracy |
| Processing Throughput | Lower throughput due to manual steps | 125 invoices per FTE per day | Higher productivity |
| Complex Invoice Handling | Complex construction invoices difficult to scale | Progress billing, commitment invoices, holdbacks, multiple tax codes handled | Improved coverage |
The client achieved meaningful cost reduction while improving AP throughput, accuracy, and workflow control. The new model supported construction-specific AP complexity and created a foundation for expanding additional accounting processes into an outsourced delivery structure.
“OHI’s AP transition plan and construction accounting experience helped us digitize a paper-heavy process and achieve reliable same-day turnaround at scale.”
Vancouver-Based Construction and Development Firm
VP Accounting & Finance
Digitize construction accounts payable and reduce processing costs
Move from paper-driven workflows to a structured AP model with 3-way matching, faster approvals, and construction-ready controls.
