Enhancing Efficiency Through Scalable AR & AP Processes for a Leading Distributor of Industrial Piping Systems Across the US

Client Overview

Our client is a leading distributor of industrial piping systems and related products, catering to various industries across the United States. With over 60 years of experience and 60 branches nationwide, it is known for its exceptional service, technical expertise, and extensive product availability. The company excels in high-purity applications, corrosion-resistant systems, fluid filtration, valve automation, instrumentation, and fiberglass-reinforced plastic (FRP) systems. The technical staff collaborates closely with customers on complex, high-performance projects, making our client a trusted industry partner.

Challenges Faced by the Client

The client faced significant challenges in managing its Accounts Payable (AP) and Accounts Receivable (AR) operations due to the high volume of transactions across multiple platforms and locations:

Invoice Management:

• Parking Lot: 150–200 invoices daily requiring error resolution.
• PNC Portal: 100–150 invoices per day needing classification.
• BNR Report: 200–250 invoices processed manually each day.

Payment Processing:

• Billtrust Cash App: 120–140 payments matched to remittances daily.
• Prelude Posting: 500–600 payments posted to customer accounts daily.
• Credit References: 10–15 daily requests for credit references, needing priority handling.

Vendor Management:

• Addressing 10–15 vendor management emails related to onboarding and queries.

Additional AR & Customer Support:

• AR Payment Follow-up: 250–300 invoices followed up daily for timely collections.
• Customer Inquiries: 100–150 inquiries handled daily.
• Discrepancy Handling: Issues like short payments due to tax, freight, or discounts required issuing red letters for resolution.

Sales Tax Dispute Management:

• Daily management of 25–30 sales tax disputes and queries related emails

Our Solution

BackOffice Pro implemented a comprehensive, scalable AR & AP process to streamline their financial operations:

• Vendor invoice review and error correction: All incoming invoices are reviewed daily for any discrepancies, and 98% of those discrepancies are resolved without client intervention.
• Invoice Processing: 200–220 invoices processed daily with a 98% accuracy rate.
• Invoice Classification/Categorization: Completed within 4–5 hours daily, maintaining a 95% accuracy rate.
• Daily Remittance Matching: 120–140 payments matched daily with 95% accuracy.
• Payment Processing & Posting: Real-time visibility of customer accounts with 500–600 payments posted daily.
• AR Follow-Up & Account Monitoring: 250-300 invoices/accounts reviewed and followed up daily. Any discrepancies are escalated to credit or sales reps for timely resolution.
• Handling Discrepancies & Issuing Red Letters: Customer payments are monitored for discrepancies in tax, freight, or discount; accordingly, adjustments are made in the account.
• Weekly Coordination with the client Credit Supervisor: This helps maintain an accurate AR aging report, ensures alignment, and resolves proactive issues.
• Sales Tax Support: Efficient handling of sales tax-related activities, including certificate validation and account classification.
• Vendor Management Activities: Streamlined vendor coordination and accounting accuracy, including onboarding and monthly reconciliations.

End Benefits - Results

The partnership with BackOffice Pro has delivered significant operational benefits to the client:

• Reduced Administrative Workload: High-volume invoice and payment processing handled externally.
• Minimized Processing Delays: Improved turnaround times and reduced backlog.
• Smoother Financial Operations: Enhanced accuracy in reporting, cash application, and reconciliation.
• Bridged Internal Capacity Gaps: Handling of volumes exceeding internal capabilities.
• Improved Customer Account Clarity: Better transparency in customer account statuses due to accurate remittance matching.
• Team Scalability: We started with a single bookkeeper and, as the client ramped up their M&A activities, we scaled the team 10x within 3 months—growing to a team comprising bookkeepers, junior accountants, and senior accountants to manage the rising volume and complexity of financial operations.

Way Forward

BackOffice Pro will continue to support the client by providing scalable solutions for AP invoice processing, payment processing, and AR management. This ongoing partnership allows the clients’ internal teams to focus on strategic financial activities while ensuring operational accuracy, compliance, and efficiency.