Client OverviewKMK: A Strategic Partner for US-Based Wireless companies
Budget Wireless Group (“BG”), a preferred retailer of Cricket Wireless (prominent wireless carrier in United States), has over 300 retail locations across United States. BG was facing challenges to manage their accounting functions including accounts payable, accounts receivable, general ledger maintenance, bank reconciliations, management reporting, periodic financial statements, cashflow management as well as many of the human resource management functions.
Client’s Challenges
BG was struggling to create their backend internal control systems since they had more than 300 points of sales and equivalent number of bank accounts to reconcile.
BG did not have a robust accounting department and therefore they did not have a visibility in the financial results of their operations at retail location level.
BG was struggling to make major decisions without real-time financial data. BG was looking to streamline their accounts receivable, accounts payable and inventory management processes
BG was also looking for HR support to process payroll since they operated in more than 8 states including California.
BG received commissions from the carrier for every line activation and/or upgrade they perform based on the rate plan and plan features they sold. BG needed a process to reconcile this commission to ensure they accurately received commissions they earned and identify any disputes for non-paid and short-paid commissions.
BG was looking for a team of technically strong accountants who can handle their requirements comprehensively.
Our Solution
BG engaged KMK for 22 FTEs (including 8 Chartered Accountants, 10 Senior Accountants and 4 Data Analysts with advanced excel skills) to manage their comprehensive requirements and to work with their onshore accounting/operations team, Controller and CFO. KMK streamlined the communication channels with BG team by using Microsoft Teams. KMK set up the team hours in such a way that it would provide at least 4 to 5 hours of collaboration time with the onshore team and depending upon where onshore team member is located while working remotely.
KMK initially reviewed the entire business workflow of BG and identified the key areas which were the bottlenecks in closing the loop all the way to financial statements preparation on a timely basis.
KMK used RPA tool to create a BOT to automate the bank statements downloads for more than 300 bank accounts from Wells Fargo bank portal resulting into savings of more than 4 hours per day of critical time to reconcile the bank deposits with point-of-sale reports. This was an extremely tedious but a very important process to ensure that sales representatives from a retail location were doing the cash deposits daily and accurately. KMK streamlined their inventory management reports based on the real-time monitoring of sell-through and implementing just-in-time ordering resulting into their inventory level reduction for more than $6MM.
KMK assisted in developing a direct fulfilment workflow that allowed their wholesale customers to order inventory online, and KMK team would place the same orders with BG’s vendors who would directly fulfil these orders to customer’s addresses. This resulted into cost savings for approximately $1.2M annually for eliminating the need for wholesale warehouses as well as wholesale inventory.
KMK used RPA and advanced excel techniques to reconcile different types of commissions that BG received on a weekly basis. KMK could trace the exact details of what BG should have received vs. what it has received. KMK could successfully filed disputes with the carrier and managed to resolve disputes over $5MM+.
Synergies Created
BG could successfully execute an outsourced accounting model and achieved the following desired results.
BG successfully reduced their operational overheads by 50%+ and achieved massive savings with curbing revenue leakages and working capital efficiencies.
With series of processes being streamlined, KMK could manage to reduce their month-end close cycle to only 10 days enabling BG’s management to review financial statements and make business decisions promptly.
BG now has a sustainable and scalable backend solution so that they can focus on their core competencies.
BG now has a reliable and effective accounting team as part of their defence mechanism. BG could achieve timely and reliable financial reporting with improved accuracy and efficiency.
All-in-one Accounting SolutionsIncredibly
Accurate Work
For U.S. Based CPA FirmsAre you looking for remote staff for CPA firm?
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At KMK, we offer comprehensive end-to-end accounting services to help your business thrive. From day-to-day bookkeeping to financial statements, our expert team has got you covered.
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