Accounts Payable Improvement for a Property Management Company

Accounts Payable Improvement for a Property Management Company

Our client, a prominent real estate and property management company, manages and rents properties across the United States. to avoid service disruptions. With a growing portfolio, they faced various challenges related to accounts payable, email management, and ticket resolution.  The increasing complexity of these tasks led them to seek an effective outsourcing solution.

They needed a solution to ensure that vendor payments were made on time and utility bills were processed without errors. ARDEM stepped in to provide accounts payable outsourcing, invoice processing services, Freshdesk ticket resolution, and email management services. Besides, ARDEM also improved the client’s payment processes.

The Challenges Faced

1. Accounts Payable Management 

The client’s internal team struggled to manage invoices. While the volume of invoices was not exceptionally high, the lack of dedicated staff to handle accounts payable tasks exacerbated the issue. Delayed payments caused vendor dissatisfaction and posed a risk of disrupted services. Staff absenteeism also contributed to a backlog of unresolved issues.

2. Email Inbox Management Issues and Ticket Management

The client’s internal team was struggling to manage the overwhelming volume of emails related to vendor queries, approvals, and pending invoices. Important emails were often missed. This led to delays in responding to vendors, resulting in further payment issues. Emails requiring urgent attention were often overlooked, which further delayed resolution and strained vendor relationships. There was no simplified system in place to manage responses and follow-ups efficiently.

The client used Freshdesk to manage vendor queries and issues. However, tickets were frequently left unresolved for extended periods, and there was no structured process in place to ensure that urgent tickets were handled promptly. This caused a backlog of unresolved tickets related to payments and vendor queries, which led to frustrations for both the client and their vendors. 

Freshdesk tickets, which were often created automatically from emails, needed to be tracked and resolved, but the client’s internal processes were not robust enough to manage this.

3. Pending Invoices

The client’s accounts payable process was slow, particularly regarding ACH payments and wire transfers. Payments were made only once a week, and the backlog of pending invoices meant that vendors often had to wait longer for payments. 

The client’s internal team also faced challenges in generating accurate payment files, which further delayed the processing of payments. Manual follow-up with the client’s internal teams on pending approvals and discrepancies slowed down the workflow significantly.

4. Managing Invoice Processing 

The client struggled with processing 500-600 invoices each month due to an inefficient system. Manual tasks and the lack of automation tools slowed processing times, causing a backlog of unpaid invoices and vendor dissatisfaction. Additionally, the client’s existing invoice tracking system wasn’t robust enough to monitor payments effectively. 

5. Utility Bill Processing 

Utility bill processing was another area where the client faced difficulties. With properties spread across multiple locations, utility bills arrived in different formats – some as paper bills, others via email, and some even needed to be downloaded from provider websites. The client had no centralized system to track or process these bills. This led to frequent payment delays and, in some cases, service disruptions. 

6. Rent Payment Challenges

The client had over 150 properties for which rent payments had to be processed monthly. The challenge arose due to the high volume of rent invoices, which needed to be paid promptly to avoid any disruptions in property management operations. Manual processing of these rent payments caused delays and required significant oversight. The client urgently needed an efficient process to ensure all rent payments were made on time without missing due dates.

Why Our Client Came to ARDEM

The client came to ARDEM with clear objectives in mind, driven by the need to improve their accounts payable operations. They also wanted to eliminate inefficiencies that were impacting their business. Here’s what they aimed to achieve by partnering with ARDEM:

1. Eliminate Backlog and Ensure Timely Payments

The client wanted to clear their backlog of pending invoices and ensure that vendor payments were processed on time. They needed a system that would prioritize urgent payments and prevent delays in processing, particularly with ACH payments, wire transfers, and checks.

2. Improve Email Management and Communication 

To avoid missing important vendor emails and queries, the client sought a more organized approach to email management. They wanted to improve communication, prioritize urgent emails, and ensure that vendor inquiries were addressed promptly to improve relationships and avoid payment delays.

3. Improve Ticket Resolution with Freshdesk 

The client aimed to resolve the issues with their Freshdesk ticketing system, where many tickets were left unaddressed. They needed a reliable process to manage and respond to incoming tickets related to payments and vendor queries, ensuring that no issues were overlooked, and every ticket was handled efficiently.

4. Implement Automation for Efficient Invoice Processing 

They wanted to reduce manual tasks, improve accuracy, and speed up the payment cycle by automating routine processes. Automation was key to reducing errors, improving efficiency, and keeping their operations on track.

5. Increase Visibility and Tracking for Payments 

The client needed a better way to track pending invoices, payment approvals, and follow-up actions. They wanted clear visibility into their accounts payable workflow to prevent missed payments and ensure that every invoice was handled in a timely manner, with detailed tracking and reporting on the status of payments.

6. To Manage Their Utility Bill Payment Process

The client wanted ARDEM to take control of their utility bill processing, ensuring that all utility bills were processed promptly each month. They needed a system that could track every bill to prevent missed payments and service disruptions.

7. To Managing Rent Payments Efficiently

The client wanted to ensure that rent payments for over 150 properties were processed on time. They wanted to avoid any disruptions in property operations. 

How ARDEM Solved These Challenges

1. Improving Email Management

ARDEM implemented a structured email management system for the client, ensuring that all emails were responded to within a defined turnaround time. We introduced a tagging system to prioritize urgent emails and tracked responses to avoid delays. By improving communication, the client was able to maintain better relationships with vendors and ensure timely responses to all queries.

2. Improving Ticket Resolution Using Freshdesk

ARDEM used Freshdesk to manage ticket resolution more effectively. The first step was to create a daily tracking system to monitor all incoming tickets. The team began exporting data from Freshdesk daily, creating a structured workflow that ensured that every ticket was assigned to the correct analyst. Each analyst was responsible for reviewing and resolving tickets based on their priority.

3. Managing Pending Invoices and ACH Payments

ARDEM helped manage the client’s ACH payments, wire transfers, and check payments more efficiently by implementing a simplified approval process. The client previously had a system where invoices were reviewed manually, which caused delays. Now, ARDEM handles payment approval files directly from the client, and payments are processed according to the client’s instructions. We also set up a tracker for pending invoices, which is reviewed during regular client calls. 

4. Improving Invoice Processing with Automation 

ARDEM introduced an automated invoice processing system for the client to handle the large volume of weekly invoices. This system was part of a complete P2P cycle management, integrating procurement, invoice approvals, and vendor payments seamlessly. This system prioritized urgent vendor invoices and ensured that they were processed promptly.

Additionally, ARDEM implemented automation tools to track and process invoices, which eliminated the backlog that had previously built up. 

5. Improving Utility Bill Payments

ARDEM introduced the ARDEM Utility Tracker, a tool that tracks each utility bill from receipt to payment. This ensured that no bill was missed, and all utility bills payments were made on time. ARDEM organized the utility accounts by payment type, giving priority to check payments. If checks weren’t received within two weeks, ARDEM authorized alternative payment methods, such as credit cards. This ensured timely utility bills payments and avoided late fees. 

How the Client Benefited from ARDEM’s Solutions

1. All Vendor, Rent and Utility Bills Paid on Time

With ARDEM’s accounts payable outsourcing, rent payment management, and utility bill processing solutions, the client achieved 100% on-time payments for vendors, rent, and utility bills. ARDEM ensured that all payments were processed efficiently. This led to improved vendor relationships and operational stability. 

Automated tracking systems and efficient processes ensured that no invoices or bills were missed. This eliminated any risk of late payments or service disruptions. By prioritizing key payment runs, ARDEM ensured that important payments were never delayed, and the client’s vendors were satisfied with the timely payments. This helped to eliminate the delays and inefficiencies caused by the previous manual system. On-time vendors’ payments improved relationships and reduced the risk of service disruptions.

2. Improved Ticket Resolution and Email Management 

ARDEM’s approach to Freshdesk ticket resolution and email management resulted in significant improvements in response times. Tickets were addressed quickly, and follow-up processes were put in place to ensure that no issues went unresolved. The client no longer had to worry about vendor complaints being lost in the backlog of pending tickets or emails. 

3. Reduced Backlog of Pending Invoices

ARDEM’s comprehensive invoice tracking and follow-up systems helped the client clear their backlog of pending invoices. The client could now process invoices more efficiently and address any discrepancies in real time, reducing the stress of managing high volumes of invoices.

4. Efficient Invoice Processing 

With ARDEM’s automated invoice processing and structured follow-up systems, the client successfully processed invoices in real time, avoiding any backlog.

5. Improved Rent Payment Processing 

We efficiently handled the monthly rent payments for over 150 properties. Thus, we ensured timely payments and prevented any operational disruptions.

6. Independence in AP Operations

ARDEM operated independently, resolving most issues without needing to rely on the client’s internal teams. This independence allowed the client to focus on core business activities.

7. Access to Best Practices in Accounts Payable and Utility Bill Management

ARDEM applied best practices in business process outsourcing, improving both accounts payable services and utility bill processing. With process automation and skilled AP analysts, the client’s operations became more efficient, reducing errors and delays.