How a global HR SaaS platform automated 80% of their accounts receivables operations

Company Overview

Founded in 2015 in Singapore, this leading cloud-based Human Capital Management (HCM) suite provider helps enterprises streamline the entire hire to retire employee lifecycle. They serve 900+ global brands across 130+ countries.

HQ

Singapore

Founded

2015

Industry

SaaS

Use Cases

Order to Cash

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The Challenge

The in-house finance team had set up a functioning accounts receivables (AR) process that served them well in the initial years.

However, once exponential growth kicked in, the finance team was not able to scale the AR process to match the speed and complexity of receivables.

The DSO lagged behind industry standards for SaaS platforms, and regularly stayed in the range of 50-60 days
The team found it challenging to keep their AR Turnover Ratio above 10. As a consequence, their CEI was under 80%
The team relied on sending manual reminders to customers, which delayed payments
Finance data was scattered across the ERP, two accounting systems, two CRMs, and one billing system. These systems operated in silos, making it virtually impossible to build a complete picture of the financial health of the business.
The finance team and the leadership team lacked visibility into the cash flow position of the business. As a result, budget allocations, reporting to the board became challenging

The Solution

Once all finance data was consolidated on Bluecopa, the finance team was able to set up reports and dashboards to monitor the efficiency of their AR process
This helped the finance team identify and continuously monitor at risk accounts with real time alerts and reminders
The team was able to set up geography-specific dashboards to monitor critical AR metrics and continuously improve collections

“We were able to understand our at risk customers and bucket them better for improving our forecasting”
FP&A Director

The Outcome

80% reduction in manual data efforts
At risk accounts brought down by 75% with timely alerts
DSO brought down by 45% to <30 days

The Conclusion

The AR operations were struggling to catch up with the team’s customer acquisition pace. With Bluecopa, the finance team was able to tweak the process and focus on the right areas to improve overall collection rate (%).