- Lack of scalability of back office support functions to support recent exponential business growth leading to customer dissatisfaction.
- Non–compliance with several lender agreements.
- Lack of knowledge and non-compliance with new Sales Tax and Use Tax regulations.
With recent exponential growth of the business and unemployment rates in the US hovering at 2 percent the client was struggling to scale back office operations efficiently and focus frontline teams on customer service and satisfaction.
Lack of scale in support functions had also resulted in non-compliance in several areas such as new sales tax legislation, strict credit and criminal record checks before customer onboarding, and untimely lender filings and submissions – all exposing the company to significant financial liabilities.
EXO Edge Solution/Services Offered: Teams of associates with specific skill sets were tailor made to support the job functions, Additionally, automation was set up for new processes that integrated with existing enterprise software systems.Customised reporting allowed for real-time updates of task status.
Benefit to the client: 60 percent direct cost savings and 100 percent compliance with relevant regulations and agreements.
- The client’s business had grown, however,with record low unemployment levels in the US, the business was struggling to cope with the growth and to find skilled resources to cover the increased workload. Property managers’ portfolios had multiplied, and they were also tasked with increased finance & administration responsibilities resulting in decreased focus on the end customer. Consequently, the average payables processing cycle increased to more than 60 days, thereby increasing vendor pain. EXO Edge’s solution was to build a core team tailor made to bring efficiencies in the Accounts Payable process by eliminating the need for property managers to enter invoices and the need for onshore accountants to verify the invoices. A Standard Operating Procedure (SOP) was built in consultation with the client to ensure standardization and continuity, the offshore team went through a robust training period, and the overall payables cycle was reduced by 15 days within the first operational month. Property managers could focus completely on their core activities, and the client noticed clear improvements in review ratings.
- The client was obligated to file periodic replacement reserve claims from the lender for property improvements in accordance with different agreements. Due to the lack of staffing and clearly defined process, there were significant delays in filings; some filings were then rejected with the cost falling on the client. EXO Edge’s solution was to build a clear SOP, a dedicated team to prepare the filings and a detailed tracker to ensure compliance and eliminate rejections. Within the first 60 days of operations, the backlog was cleared, and ongoing delays were eliminated. The client also relied extensively on the tracker to keep lenders updated on upcoming claims.
- Use Tax is a US tax levied on products and services used in a jurisdiction with sales tax in effect but purchased from a jurisdiction where tax was not paid. EXO Edge built an automated solution for the client to (a) Account for Use Tax by grossing up relevant invoices in the accounts payable process and (b) Prepare returns and filings for every relevant state. With increasing audits of Use Tax, this eliminated any associated financial risk for the client.