Success Story: Transforming Profitability for a 25-Year-Old IT Company

Client Profile

Our client is a New York-based IT company that has been in operation since 1998. The company offers a wide range of services, including reselling Microsoft licenses, providing on-demand and SLA-based IT support, and subscription-based IT support.

Challenges Faced

Despite being in the industry for over 25 years, the client struggled to achieve sustainable profitability. While some years yielded small profits, they were often offset by losses. With the same accountant managing their books for 16 years, the client believed their high operational costs were the root cause of the issue.

In 2023, the client approached Global Insights KPO for a review of their books and Fractional CFO services. Upon diving into their systems, our team discovered multiple revenue leakage points that had gone unnoticed for years:

• Unbilled Licenses: Licenses procured from various MSPs were not being billed correctly to clients.
• Time Logging Discrepancies: Employees and contractors working on billable client tasks were logging their time as non-billable internal hours. No system existed to verify or monitor time entries, leading to significant revenue loss.
• Contractor Invoice Issues: Contractor invoices were being paid without proper verification against time logs and deliverables.
• Subscription Billing Errors: For subscription-based clients, billing was based on outdated seat counts, failing to reflect increased usage over time.

Our Approach

The team at Global Insights KPO stepped in with a collaborative and systematic approach:

• Process Optimization: Drafted and implemented a robust time logging and verification process to eliminate errors.
• Revenue Assurance: Introduced cross-verification procedures for contractor invoices and ensured accurate billing for licenses and subscription-based clients.
• Strategic Guidance: Provided actionable financial insights and cost-saving strategies as part of our Fractional CFO services.

Results

Within months of working with Global Insights KPO, the client began to see remarkable improvements:

• Revenue leakages were plugged, leading to consistent profitability of at least 22%.
• Financial statements are now prepared and delivered on time, enabling informed decision-making.
• The client can focus entirely on business development, trusting our team to handle backend accounting and finances efficiently.
• Most importantly, the client is now saving over 50% of the costs they were previously incurring with their old accountant.

Conclusion

Recognizing our value, the client transitioned from engaging us solely for review and CFO services to entrusting Global Insights KPO with end-to-end accounting.

At Global Insights KPO, we pride ourselves on being a trusted partner to our clients, working as an extension of their team to streamline processes, boost profitability, and enable sustainable growth.