Managing cash flow and customer relations for a top 50 UK accountancy firm
This client, a top London accountancy firm, has used Sterling since 2009. Sterling began by having discussions with them regarding their credit control function. At the time it was being managed by a finance controller and assistant, both of whom had other responsibilities which they were giving priority to. The firm was very nervous about outsourcing, in particular about potentially upsetting their strong relationships with sensitive clients. Sterling proposed a trial of our credit control service to a small group of partners over 6 months. During the trial outstanding debt for the trial group was reduced by over 25%. More importantly for the firm this was achieved without any negative effect on customer relationships. In fact, by engaging with the clients more proactively, in a sensitive manner, and in such a way that the partners were protected from difficult conversations about outstanding bills, Sterling were able to improve customer relations, and, as an added benefit, free up more fee earning time for the partners.
The firm outsourced the entire ledger to Sterling shortly after the trial. Sterling continues to manage the ledger for the firm as well as providing legal and debt recovery services and advice when needed. Since taking on the full ledger Sterling have reduced debtor days for the firm by over 35%, with instances of bad debt at an all-time low. The firm regularly recommends Sterling’s service to their own clients who may be struggling with outstanding debts.