• 13% reduction in debtor days outstanding in first three months
• 74% of all invoices were settled using IODM
• Improved with automation and speed of debtor management process
• More responsive client experience through quicker resolution of
• Driving behavioral change in clients to pay on time
• Strong ROI
BDO Perth is one of WA’s largest full-service accounting firms, with 23 partners and 210 staff providing advisory, tax, audit and assurance services. A core value of the firm is innovative thinking, and, true to their beliefs, were looking at ways to enhance their debtor management process.
In particular, the firm wanted to introduce efficiencies into its accounts receivable function and reduce its debtor days outstanding.
Chief Financial Officer, Jodie Hede, explained: “We were keen to bring some automation to our AR process and speed up our collections period. We have a lot of corporate clients that have fixed or monthly pay runs, so getting our debtor days down is something that can be quite difficult,” she said.
“Another core value is exceptional client service, so we wanted to make the payment experience for clients even easier in terms of being able to quickly resolve any queries they may have had with their account.”
After seeing a presentation on IODM’s debtor management solution, BDO signed up on the spot. “We liked what we saw, started with a trial around Christmas, and went live in April,” Jodie said.
Since rolling out IODM, BDO’s debtor days outstanding has fallen by 13 per cent.
“This is a fantastic outcome,” Jodie said. “We’ve condensed the collections process timeframe, so not only are we getting paid faster, we’re benefiting from funding cost reductions.
“And through IODM we’re educating our clients that we expect to be paid within our terms, which they’re now taking on board,” she said.
In addition, 74 per cent of all overdue invoices have been settled using IODM.
“The Query Account feature is really useful,” Jodie said. “It makes it easier for clients to let us know if they’ve got a query regarding their fees or want a copy of their invoice. They don’t need to ring us up; rather they just click on an email link. We then know about it straight away and can respond immediately.”
“We’ve condensed the collections process timeframe, so not only are we getting paid faster, we’re benefiting from funding cost reductions.”
As the process of sending out a reminder and debt collection letters is fully automated, the business has achieved some time savings, according to Jodie. “We’re expecting to achieve even greater time efficiencies as we learn to use the system more effectively,” she said.
In terms of ROI, the solution has “definitely paid for itself”, Jodie remarked. “In fact, it’s a cost positive equation because we’ve brought our debtor days down and are no longer paying external costs to produce debt collection letters.
“IODM also reduces our risk in that we have a greater awareness of whether an invoice is going to get paid earlier.
“Overall, it’s a great workflow tool,” Jodie said. “As CFO, the winner for me is the reduction in our debtor days outstanding. Given we’ve not fully optimized the system yet we’re looking forward to seeing if we can get that down even further”
“IODM also reduces our risk in that we have greater awareness of whether an invoice is going to get”