Issue
An SEC-registered mid-market administrative and support services provider with $1B in revenue acquired another company through an agreement requiring the seller to maintain and report accounts receivable (AR) throughout the transition period and beyond. The seller struggled to provide cohesive, comprehensive reporting because it included multiple entities with disaggregated systems, many of which remained in use after the sale. In the nine months since the acquisition, the company suspected a gap existed between receivables collected by the seller and those remitted to the company. However, it was unable to reconcile the general ledger with AR collections to verify the existence and quantify the size of the gap.
Solution
CBIZ utilized the Alteryx Platform to clean and summarize approximately 8-10 million rows of entity-wide invoice and customer data provided by the seller. The results of this analysis allowed us to prepare detailed AR roll-forwards by invoice and customer and determine the total collections of the customer’s ARs by the seller. That information was then compared with the total amount remitted to the buyer or the company by period to determine the financial exposure.
Shedding Light on Your Financial Situation
Identifying and closing financial gaps only scratches the surface of what we do. Our Financial Accounting & Advisory Services team helps you maintain sound financial practices throughout the organization’s life cycle, allowing management to focus on strategies that ensure continued growth and sustainability into the future.
Outcome
As a result of our analysis, the company was able to quantify the size of the gap in AR reconciliation efforts, recouping over $2M in cash owed to the company by the seller based on actual AR collections. In addition, the company was adequately prepared to transition the customers to their own AR system and process, as we provided a clean starting point.
| Company Information | |
|---|---|
| Industry | Administrative and Support Services |
| Entity Type | Corporation |
| Ownership Structure | Public |
| Geographic Footprint | Northeast and Mid-Atlantic |
| Annual Revenue | $1 Billion |
| Number of Employees | 4,200+ |
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