Case Studies | BMCSAAS

Case Study 1: Outsourcing the Accounting Function - A Successful USA/India Collaboration

Executive Summary

ABC Corporation, a business with 65 tanning salons in 70 locations across the USA, faced complex tax, financial, and legal challenges. To manage these effectively, they outsourced their accounting operations to Miller Grossbard Advisors LLP (MGA), a member of the Alliott Group. This collaboration was further enhanced by involving BM Chatrath & Co (BMC), an India-based accounting firm, resulting in significant cost reductions, improved efficiency, and strategic growth.

Introduction

Outsourcing has become a strategic option for businesses aiming to stay focused on their core activities. For ABC Corporation, outsourcing their accounting functions proved to be a critical decision that enabled them to manage complex financial tasks while concentrating on their primary business goals.

Challenges

ABC Corporation faced several challenges:

Complex tax regulations
Multijurisdictional financial issues
High administrative burden on the management team

Solution

MGA, an accounting firm based in Houston, Texas, took over ABC Corporation's accounting operations. To further optimize the process, MGA partnered with BMC, leveraging the time zone difference between the USA and India to enhance productivity and efficiency. Key aspects of the solution included:

Transitioning transactional processing workloads such as QuickBooks accounting and accounts payable to BMC.
Retaining control over critical activities like key decision-making, accounts receivable, monthly forecasts, and financial analysis at MGA.
Creating a shared workflow platform for seamless data access and management.

Implementation

The collaboration involved setting up a smooth workflow process, ensuring clear communication, and providing excellent training. This framework facilitated high-quality output and client satisfaction. Regular meetings and conferences strengthened the relationship between MGA and BMC, ensuring mutual understanding and alignment with the client’s goals.

Results

The outsourcing arrangement delivered impressive results:

Reduced infrastructure and technology costs for the client.
Leveraged time zone differences for faster processing.
Achieved less than 1% rework on invoice processing within a month.
Improved supplier relationships and secured more favorable payment terms.

Client Testimonial

Russ Miller, Managing Partner at MGA, emphasized the importance of the trust and quality assurance provided by the Alliott Group membership, stating: “Being able to work with BMC, a firm we know and trust through our Alliott Group membership, ensures our clients experience a service approach that is of a certain quality. This allows our clients to focus on achieving their personal and business objectives.”

Conclusion

The collaboration between MGA and BMC exemplifies how strategic outsourcing can drive efficiency, reduce costs, and enhance business growth. The case study demonstrates the value of international alliances in providing comprehensive solutions to complex business challenges, ensuring long-term success and client satisfaction.

References

Alliott Group | www.alliottgroup.net | marketing@alliottgroup.net

Disclaimer: Alliott Group is a worldwide alliance (association) of independent accounting, law and consulting firms. Each Alliott Group member firm is a separate legal entity and is not responsible for the services or activities of any other member firm.