Client: An event management company based in Atlanta, GA, United States, provides comprehensive catering, floral, design and decor services to corporate, wedding and social events. They manage an average of 2000-2200 events every year and as a result, there are always in need of top-notch accounting work which they weren’t able to receive in past few years. Read on to know why.
Challenges faced by the client: The event management company delivers comprehensive services to a diverse set of clients. More often than not they may have to work on multiple events that happen simultaneously at different schedules. This is way beyond regular functioning which as a result triggers a lot of complexity in accounting and even regular operations.
Any event management company has to deal with multiple vendors and a large workforce temporarily. The services delivered are simultaneous, dynamic and diverse which causes a lot of compliance and accounting challenges to the in-house accounting team.
For a business that is well occupied in organizing a wide variety of events for businesses all around, the focus must always be on business die (planning and organizing). But this seldom happens when the accounting is sub-par resulting in a variety of cash flow problems. And our client faced similar issues.
For example, each event may necessitate working with 200-300 vendors who may be changed for every event. Each of these events brings aboard a heavy volume of accounting work – income and expense reconciliations, invoice management, expense tracking, vendor and supplier payments, cash forecasting for new events and more. Inefficient accounting in any of these areas interferes with future operations and vice versa.
Goals of our client: Limited accounting resources, unstructured accounting processes and a high volume of accounting work triggered many problems which reduced their efficiency. Especially in accounts payable, manual processing has become a huge burden due to a lack of resources that aid in the digitization of bills. The primary goal of our client is to establish a smooth AP process that can digitize hundreds of bills as soon as they arrive. The second goal of the client is to have a dedicated team at hand to augment the in-house accounting team in various accounting tasks.
Solution by Outsourced Bookkeeping:
Equipped with a dedicated remote AP team Outsourced Bookkeeping has a solid accounting workflow that can digitize the AP bills swiftly at will. Having worked with a different types of event management companies we are well aware of the challenges and accounting work that their line of work demands.
So we have quickly assembled a dedicated AP team which follows a 3-step digitization process at our secured premises to convert the bills into digitized bills that are ready to be uploaded into cloud accounting platforms. The convenient time zone difference enabled us to deliver all the digitized work well before our partners resumed their day’s work on their premises. Over the time during the peak season, we were also able to provide a helping hand with their reconciliation and other accounting work as requested.
Outsourced Accounting Services to Event Management Company: Benefits
- Reduced the overall requirement of in-house staff
- Cut down the AP processing time by 60%
- More leg room and increased flexibility to cater to more events without having to worry about accounting work.
- 24/7 accounting support with the fastest turn-around time.
- Considerable increase in the net profit mar4gin.
Accounting requirements of event Management companies are unique and time-sensitive due to the amount of cash and compliance that is involved in the whole operations. There is no doubt that accounting takes the front seat in driving the profitability of event Management companies. And for that to happen it is necessary to seek help from accounting experts who specialize in event management accounting services, like us at Outsourced Bookkeeping.