50% reduction in property accounting month close through process transformation

Key Challenges

A major REIT was experiencing a dip in customer satisfaction levels due to the long wait times for query clarifications. It was unable to address the majority of flux variances on time or meet the tight deadlines for month close activities post the check run due to:

  • Delays in receipt of responses and clarifications
  • Delays in the generation of bank statements
  • The posting of accruals and reporting requiring 3 days each

The GO Creative™ Solution

Our expert RRD Real Estate Accounting Services team performed a detailed study of the existing processes and set up new processes. As part of the transformation, the following activities were started mid-month:

  • Review of journal re-classes
  • Email follow up with property managers for additional information
  • Reconciliation of the month end work papers (rental, expense scrub, SLR, P&L)

Additionally, we reconciled bank accounts on a weekly basis and automated the formatting of monthly work papers. The team also standardized the flux variance comments to expedite month close.

Outcomes Achieved

The client was able to increase customer experience and operational efficiencies by:

  • Reducing the average time for month close from 6 days to 3 days
    • All entries posted on day 1, reporting and flux analysis performed on day 2 and 3
  • Saving 34 man hours by automating manual tasks
  • Submitting financials to stakeholders and investors on time