When LeadVenture needed to resolve their accounts receivables challenges, they turned to CloudConnect Consulting
Leadventure is a SaaS website provider of digital marketing services for dealerships, OEMs, and resellers across 13 verticals, operating multiple subsidiaries that provide solutions to drive leads and in-store sales. With over 28,000 clients and services that range from website management to marketing tools and eCatalogs, LeadVenture has formed relationships with some of the largest manufacturers in the industry.
As the company continued to grow with multiple acquisitions, standardizing processes and systems across multiple businesses became difficult. The volume of transactions grew, along with manual labor and data scattered across different platforms. Collections and reconciliation processes became an increasingly challenging, time-consuming, and inaccurate endeavor. So, LeadVenture turned to Paystand and Netsuite to automate their payment process and manage their financial data in one place.
Challenge: Unify data, collection, and reconciliation processes
Jonathan Kuczer, Leadventure’s Corporate Controller, started their AR automation process after a period of acquisitions. Initially, the company decided to leave their newly acquired companies’ systems operating individually, including maintaining standalone ERPs. But multiple systems complicated reporting processes. Multiple systems meant multiple data and reports.
Even though there were multiple payment tools and ERPs in place to manage legacy paper-based payments methods, as Jonathan noted, these weren’t providing enough benefit to solve bigger issues LeadVenture faced. In particular:
- The month-end close processes took too long to run.
- The individual ERPs did not provide real-time visibility.
- Payment information took half a day to receive.
- Payments took too long to reconcile, causing double-billing efforts on invoices that had already been paid, creating friction with customers.
- Internal applications took 4-5 days to process payments, often in batches per payment method one at a time.
- Costs of maintenance were high.
Leadventure saw this clearly with one of their subsidiaries, who used two apps to run payments and collections, causing payments to be made from outside the systems.
Resolving these problems started with implementing an ERP that could cover every subsidiary and acquisition. Leadventure has about 15 people in their billing team handling over 20,000 customers with an average ticket of $400-500. They chose NetSuite as their ERP solution for their fast processing, cloud agility and stability, and better reporting.
Implementing NetSuite requires a level of sophistication, and LeadVenture reached out to Ron Bester, CEO of CloudConnect, to help implement the solution. Some of the biggest challenges that LeadVenture took on during this process was correct data migration and refining invoicing workflows while keeping independence between their subsidiaries before customers, and solving these issues:
- A high volume of transactions with an average ticket of $400-$500 ticket at the lowest processing cost.
- Eliminating the need for +5 ERP systems and +2 card and payment processors.
- Allowing their team to automate collection processes for thousands of customers.
- Get reliable and fast ways to pull accurate reporting throughout the month.
Solution: AR automation in one place
Once the financial processes were carried out in Netsuite, Paystand’s SuiteApp integration helped Leadventure digitize the entire payment lifecycle by automatically applying payments and reconciling deposits, reducing workload and time, and improving accuracy. The LeadVenture finance team will no longer have to guess which transactions match deposits and they will now seamlessly tie payments to invoices. This is the benefit of automated reconciliation with Paystand and our SuiteAPP.
Another Paystand feature LeadVenture plans on leveraging is the Pay Now button, which reduces customer payment friction thus decreasing late payments and improving collection processes. Once their workflows are set in place, LeadVenture reduced their DSO from inherited stale DSO, reduce payment fees, and see better results by:
- Using the Pay Now button feature in automated invoices.
- Using the auto reconciliation feature for reducing hours of manual labor.
- Cleaning up data from other ERPs.
- Leveraging Paystand’s zero-fee banking network for processing payments.
- Eliminating manual process, and bringing down the number of >90 days payments.
- Reducing credit card fees that currently cost them millions of dollars per year.
Need to automate your AR processes?
LeadVenture turned to CloudConnect Consulting for a solution to their accounts receivables challenges. Our automation with Paystand and CloudConnect’s implementation team helped address high DSO and late payments, ledger disorganization, poor customer correspondence, and lack of sound policies. CloudConnect Consulting provided valuable insights into modern solutions that could solve these issues quickly and cost-effectively.
We offer tailored strategies to meet the unique needs of each business, as well as speedy and reliable customer service. Put your trust in us – choose CloudConnect when you need results-driven solutions.