Case Studies

Financial Analytics Case Study

The following is a Case Study of a US based Automotive Parts Company with a global presence. The Company operates across US, EU and Asia

Problem: Dwindling trust of vendors due to non-payment and / or delayed payment for goods or services rendered. Even though the company was expanding through M&A (Mergers and Acquisitions) process, acquiring smaller business operating in the field of auto parts. However, there seemed to be a consistent -ve VOC. Though the Senior Management Team had an inkling of the problem, yet they could not define the quantum of the same and / or exactly pinpoint the issue.

Solution: Perform a detailed Data Analytics of their AP Ledger spanning a year for all their entities and identify problem areas.

Quick Kickoff Process: Discussions with the P2P Head, CFO and the CEO ensued to understand the level of detail the Management was looking for and the various parameters they would like to view in the form of analytics.

Understanding the Bigger Picture, Not Just the "Ask": A few discussions with the respective Business Head helped us to understand what the Management was looking for. The objective was to identify the different challenges the company was having in different entities. What further could be done to bridge this gap and alleviate the challenges in the overall P2P process and also do a comparative of the company’s performance vis-à-vis the benchmark and best-in-class.

Detailed Analysis and multiple perspectives: In-depth detailed data analytics was done involving substantial slicing and dicing of data to provide multi-dimensional view of the organisation’s performance to the Management. While analysing we not only looked at the overall organisational performance but delved into entity and vendor level performance. This gave a well-rounded view to the Management about the ground reality and problem areas.

Data Analytics Inputs: Observations was shared with the Senior Management Team on different aspects:

  • Invoice Ageing Analysis
  • Invoice Posting Cycle Time Analysis
  • Invoice Processing Time Span Analysis

Results: The outcome of analysis was presented to the organisation helped them to understand the problem areas which otherwise could not be identified. We also presented a comparative of the organisation’s performance in comparison to other business and Best in Class Benchmark Threshold. The analysis helped them to build necessary Policies and Procedures to improve their Processes and also lead to a steady positive change in customer VOC.

Compliance Management Case Study

The following is a Case Study of a US based Company engaged in ensuring Compliance for its customers operating in the field of shares and stock trading. Their customer base is spread across US, EU and Asian markets.

Problem: The Company was struggling with volume, quality and completeness of data entry from user statements in their core system. This is the very base and the most important part of the process and if not executed properly would result in incorrect results and unhappy customers. Compounded by COVID and attrition, the situation worsened, and the organisation found itself under a massive backlog and inadequate service delivery.

Solution: The Company was looking for low-cost, high-quality service delivery and a dedicated team who can turn around the situation, help in clearing the backlog on its pivot and bring the entire process upto date in a short span of time and then continue to build on the same.

Quick Kick-off Process: We offered our expertise and support for the task. The team was setup within a fortnight and training commenced. The team went beyond the call of duty and put in additional efforts with an objective to garner complete understanding and to put our arms around the process. Within a short span of time, the team was able to understand all the nuances of the process.

Understanding the Bigger Picture, Not Just the "Ask": Whilst undergoing training, it was not just a one-way process. The team at Wealthedge went the extra mile to delve deeper into the system and came up with queries on various areas and functions to ensure that there was no gap in process understanding that may lead to quality errors.

Results: Backlog cleared within a short span of time, tasks went current and a happy customer: The team at Wealthedge took ownership of the process and ensured that tasks were delivered with 100% accuracy. Backlogs were cleared within a short span of time. We gained the customers trust and today this is one of the biggest team. The consistency and quality service delivery helped us win another business of the client.

Financial Modelling Case Study

The following is a Case Study about a US based Mobile Tech Company operating in multiple geographies into B2B Sales and support arena.

Problem: The Company was trying to obtain financing for business expansion. This required them to present their financial projections based on research and in a way investors understand. Operating in 14 countries and 3 regions globally, the company was poised for a leap. The organisation was vying for a large investment and was pitching for it. While flipping through their Financials, they found that the financial projections needed a fresh pair of eyes. During their investment discussions when financial projections came up for discussion, they figured out that their financial presentation was weak. Though the internal team was conversant with the way things were happening historically and the format being used, but the VC’s could not understand them and a lot of critical numbers and representation for a good financial projection were missing. The Financial Model was not upto the mark.

Solution: A financial model with significant flexibility and logic, with every assumption based on research.

Quick Kickoff Process: The Company approached us and we offered our expertise support for the task. Detailed discussions ensued to understand what the ask was. What was existing and what was expected.

Understanding the Bigger Picture, Not Just the "Ask": What was very important was to go beyond the immediate ask and understand the bigger picture and the need of the customer. The need to redesign the complete Financial Model ground-up. It entailed developing a sustainable Model which would be easily understood, future-proof, scalable and can grow with the needs of the organisation as it evolved.

A Flexible Financial Model: We went through every aspect of the financial statement and created the entire Financial Model from scratch. A model that is globally accepted, easy to understand and one that can be easily deployed. A detailed yet simple and dynamic model, which can be a plug and play of sorts.

Market Research to create fact-based Financial Model Inputs: Regular meetings and numerous interactions with the customers to have a clear understanding of their business, the markets they operate or want to expand into, the competitors, company’s prior performance and future business outlook. Detailed research on similar companies was done to understand how their financial models are designed and what are the aspects that any VC / Investment Bank would look for to take judicious investment / financing decisions.

Results: A flexible financial model based on deep market research that aided the Company in closing it’s investment requirement: With a flexible financial model and market research the Company was able to successfully close the financing round. The Financial Model was implemented and is now being used in practice by the organisation globally.

Accounting & Consolidation Case Study

Following is a case study of consolidation of Books of Accounts of a US based Real Estate Company operating in multiple geographies in USA.

Problem: The Company was operating through various LLCs (Disregarded entity) and books of account of each entity was being maintained separately. Since all LLCs were “Disregarded Entity”, at year end financials of all entities were being merged. In the year of our engagement, we were asked to consolidate the books of entities and maintain single books of account while maintaining the business wise segmentation of their business.

Solution: For fulfilling client requirements and business needs of the company, we had to devise a mix method of division and branch accounting.

Kick-off Process: The Company approached us, and we offered our expertise and support for the task. Detailed discussions ensued to understand what the ask was. What was existing and what was expected.

Understanding the System: What was very important was to go beyond the immediate ask and understand the bigger picture and the need of the customer. There was a need to streamline the complete books of accounts of all companies. This entailed developing a comprehensive chart of accounts which required studying the business of all the companies and prepare a standard chart of account which was to be followed across all entities.

We at Work:
  • We prepared Master Chart of Accounts with GL Codes and detailed Ledgers which were uniform across the companies. Since all businesses were not identical, main goal was to maintain uniformity and eliminate duplications.
  • Once COA was finalised, we moved ahead with standardising the books of accounts which involved renaming of few ledgers and consolidation of few.
  • Once the books of accounts were standardised, we created locations and classes in the new company.
  • At stage 4 we combined the books of accounts of multiple companies into the newly created company and maintained their individuality through locations.
  • This helped us to have the accounts of all erstwhile companies under one consolidated Company, yet each entity was having separate financials being tracked through location structure.
  • This led to easy consolidation and accurate MIS reporting, which the Management could have a look at one go instead of going through records of numerous companies which they had to do in the past.

Way Forward: As a way forward, comprehensive Accounting Manual was prepared which catered to all accounting processes across the company. Training was conducted and key persons of each department were briefed on how to handle the financial processes.

Results: One comprehensive books of account is being maintained, wherein the financial transactions are categorised according to its nature, business segment and geographical locations. Management can see a multi-dimensional MIS as per their requirement, for each entity, GL etc.