Friday, July 19, 2013

Kahiki’s Financial Conversion to S.F.S.

Recently, the move of several financial processes from Kahiki to Shared Financial Services was completed.  The processes moved included Accounts Receivable, Fixed Assets, and Accounts Payable.  Prior to the implementation phase, the Accounts Receivable and Accounts Payable staff needed to learn a completely new accounting software system used at Kahiki called Compass.  In addition, they needed to become familiar with a business that was a little different from their prior experience.

Our implementation game plan calls for three main steps:

  1. Getting things converted and working properly.  Opportunities to improve business processes are looked at during the implementation planning. 
  2. Getting things to work better.  As we gain more experience and more repetitions doing new things, we work out the bugs, bottlenecks, and inefficiencies in our processes.
  3. Getting things to work the best they can.  This is an area of ongoing focus that is in line with our constant effort for continuous improvement.  It involves stepping back, reviewing current business process, and finding ways to continue to make us better and more efficient. 
Accounts Receivable was implemented with all payments being remitted to the bank lockbox and sent to SFS for cash application onto customer accounts.  As part of this process, any payment variances were referred back to Kahiki for resolution.  More time is being devoted to improving customer collection results and we have seen great improvement.

Fixed Assets were moved in order to standardize what was being done for other ABARTA companies supported by Shared Financial Services.  The standardization of this area was very helpful in working with our tax department and year end responsibilities regarding fixed asset and depreciation issues.

Accounts Payable was the last area to be implemented.  A couple of key process improvements prior to full implementation included;
  1. Reimbursing T & E payments through payroll, consistent with other ABARTA companies.
  2. Utilizing purchasing cards for smaller dollar purchases to reduce the number of  invoices and checks run through the Accounts Payable System.
Both inventory and non inventory invoices are currently processed at Shared Financial Services.  Any questions or issues are resolved with the local Kahiki financial staff prior to final processing of invoices.  All check payments are handled by Shared Financial Services.

In completing the Kahiki conversions above, we have realized cost savings for our company, while streamlining our business processes at the same time.  We look forward to continuing to serve Kahiki as a valued new customer of SFS!

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