Simplified Invoicing, Streamlined Vendor Management Eliminates Hassles and Facilitates Growth
An award-winning cloud services company was in high-growth mode – which presented several potential headaches for its management team.
Although new clients are great, every new account required the company to add hardware to support its services. Typically, the company purchased and financed the hardware from various vendors. This gave the company fast access to the equipment it needed, but managing so many disparate invoices and finance programs was becoming overwhelming – particularly as a growing organization with resources already stretched thinly.
To continue its growth trajectory, the company realized it needed a better finance solution that would allow it to continue to obtain the equipment it needed but with far fewer administrative hassles.
Customized Lease Schedules to Simplify Accounting Procedures
First American offered a customized program that established a master lease line with quarterly takedowns. Using both capital and operating lease structures, the lease covered upgrades and expansion to server capacity at the company’s two primary data center locations.
The quarterly lease schedules allowed First American to bundle all the company’s equipment orders across multiple vendors into a single quarterly invoice for the company to pay. This simplified their accounting procedures tremendously; rather than manage one invoice per vendor transaction, the company now needed to reconcile only four invoices per year.
Outsourced Purchasing Management and Vendor-Neutral Flexibility
To streamline the day-to-day management of vendors, the First American Project Manager took responsibility for:
- Placing vendor orders
- Tracking deliveries
- Auditing vendor invoices against original purchase orders
- Making timely payments to vendors
- Preparing quarterly lease schedules
The benefit was immediate for the company. “No other vendor delivered the same level of customer service,” stated one top executive.
Since partnering with the company, First American has completed more than 50 lease schedules – and this efficient, accessible finance source has been a key factor in the company’s growth. First American truly became a trusted resource and committed team player, which has resulted in long-term relationships and ongoing success.