• Client name: NDA
• Client Location: Schaumburg, Illinois
• Industry: Real Estate / Property Management Company
• Tools used: Xero, Hubdoc, Google Drive, Google Sheets
• Duration: 2020 to 2024

About the Company:

The client is a commercial real estate company located in Illinois and offers office space under traditional as well as flexible lease terms along with a division catering to fast paced monthly rental offices. They generate a steady stream of rental income and incur ongoing expenses. Initially having 3 properties, accounting of all incomes & expenses both at property level & at the level of sub-units within the largest property was a crucial requirement in order to see upcoming expenses, revenues & profitability both at macro & micro levels of business & ensure financial stability and long-term success in this competitive industry.

Problem Statement:

When we first engaged with the company, their financial records were in disarray. There were numerous untracked and unreconciled tenant receipts and many vendor bills had been misplaced, resulting in repeated late payment penalties. Additionally, the company was incurring government fines due to delayed property-related compliances & there was also a delay in recording and payments of associated fees for these compliance services which were often accompanied with late payment charges. Their previous local CPA led accounting team using QuickBooks for accounting along with the use of Bill.com by the client for vendor invoice payments had failed to provide the proactive level of service required, leading to exorbitant charges for unacceptable results. The bookkeeping & accounting was effectively a “too little too late” dead end process being used only for the purpose of tax filing.

How We Helped:

We took immediate action to overhaul their accounting processes: Firstly, by transitioning their accounting system from QuickBooks to their preferred platform: Xero, which offered a more streamlined base with a user-friendly interface for business owners wanting an accurate glance of their business finances & actionable items within a few simple clicks. We implemented a structured process to accurately capture vendor bills and tenant receipts using email forwarding rules & integrated HubDoc to ensure every spent money receipts & vendor bills reaches the correct Xero destination timely & accurately. We also established workflows to ensure timely payment of vendor invoices and property-related local government & authority fees, and within the first few months of our engagement, we had eliminated all avoidable late payment charges or penalties which were previously resulting due to untimely bookkeeping practices.

While reconciling bank and credit card transactions, we ensured attaching all available receipts and payments supporting documents. We also proactively ensured filing & cross checking all signed agreements (whether with vendors or clients/tenants) which allowed us to develop a very credible process of speedily approving vendor payments & managing clients as we could immediately pull up these documents to correct any overcharges in vendor invoices or settle any queries & confusions with the vendors / clients on the basis of these signed agreements.

This significantly improved the efficiency of their accounting operations and made tracking the basis of all transactions much simpler while overcoming the limitations of human memory.

Long-term Advantages:

Due to our intervention, the company experienced significant improvements in its financial operations. The reduction in penalties and fines resulted in immediate cost savings. Timely marking a client’s invoice as paid avoided false overdue payment follow-ups with the tenants, leading to better human relations. Better cash flow management also led to smoother day-to-day operations. The transition to Xero enhanced financial transparency, enabling the company to proactively identify potential issues and manage their financial obligations more effectively. These changes followed by an engagement of timely cyclical updation of books positioned the client to stay updated & make sensible business decisions instead of chasing locally available overpriced bookkeepers at the end of each year just for the sake of tax filing.