Case Study

Process transformation, automation, and Systems of EngagementTM increase reconciliations by 43%

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Client:
A multibillion-dollar hospitality company with nearly 600 properties worldwide

Industry:
Hospitality

Business need addressed:
Slow reconciliations processes were not giving the finance and accounting team sufficient time to resolve open items or focus on reporting data analysis, which contributed to a lack of controllership

Genpact solution:
An Intelligent OperationsSM based transformation of reconciliation processes, incorporating automation, people and policy improvements

Business impact:

  • Increased reconciliations by 43%
  • Fewer open items and write offs
  • Standardization and simplification
  • More scalable and agile operations

A global hospitality company faced challenges with its reconciliations processes as it could close only 68 percent in a timely manner, despite having implemented a leading reconciliation-management tool. This led to lengthy cycle times, overworked staff, and error-prone reporting, which hindered the overall view of financial information and contributed to a lack of controllership.

Genpact combined smarter processes, technologies and analytics to enhance productivity, and enable Intelligent OperationsSM. This helped the client close 97 percent of reconciliations within established timelines, and gave staff more time to dedicate to analytical activities, and create effective action plans.

Business challenge

The finance and accounting team responsible for the hospitality company’s North American hotel properties was able to reconcile only 68 percent of its accounts on time. This was in spite of its investment in targeted reconciliations technology that had failed to show the expected results in efficiency, tighter controllership, and faster, more responsive decision-making. Due to the significant backlog of open items, the staff and controller had little time to focus on root-cause analyses, open-item resolution, and other value-added activities.

Genpact solution

Inspired by our Intelligent OperationsSM approach, which builds smart processes that can sense, act, and learn at scale, the client chose Genpact to help reimagine its reconciliations process.

Genpact standardized and automated the end-to-end process while localizing procedures. It also eliminated silos, gaps in knowledge and processes, and manual entry.

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To enhance productivity, Genpact combined smarter processes and analytics with Systems of EngagementTM - technologies that overlay existing systems of record (or ERPs). With greater access to more accurate data, it created a continuous feedback loop that gathers process data and harnesses insights to drive ongoing improvements.

To transform reconciliations, Genpact:

  • Re-engineered the process to enable consistent, automatic, and seamless flow through the management tool
  • Aligned teams, via a center of excellence model, to allow for the cross-pollination of ideas and best practices, and reduce people dependencies
  • Prioritized the client’s accounts by level of risk, and defined the level of detail and frequency with which it would conduct reconciliations for each account
  • Improved governance and tracking to ensure reconciliations are completed within established timeframes
  • Championed a more knowledgeable finance and accounting team, with greater focus on value-added strategic activities

From the standpoint of technology transformation, Genpact:

  • Assessed the client’s back-office environment and requirements against industry best practices
  • Implemented standard templates, such as prepaid reconciliations, accrued reconciliations, and control accounts, across the client’s North American operations
  • Introduced automated balance-sheet reconciliation capabilities, which enabled consolidated submissions and property-level reconciliations, and instituted smart grouping of accounts (e.g., all capital accounts together)
  • Developed a set of customized auto-match parameters

Impact delivered

By re-engineering processes with technology optimization, the client could achieve best-in-class reconciliation processes across its balance-sheet categories. It benefited from:

  • An increase of approximately 43 percent in timely reconciliations
  • More time for controllers to review, provide feedback, and resolve open items on end-of-month reports
  • Faster, more informed decision-making and increased market agility
  • Greater accuracy and completeness of financial statements
  • More time for staff to work on open items, perform root-cause analyses, create resolution action plans, and engage in value-added activities

Today, Genpact continues to accelerate the delivery of more cost-effective, accurate processing, and free up time for work that delivers greater value.

For more information, contact, cfo.services@genpact.com and visit, genpact.com/what-we-do/business-services/finance-accounting/accounting-closing-reporting

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