Teespring, headquartered in San Francisco, California, is a platform that makes it easy for anyone to create and sell high-quality products people love, with no cost or risk. According to founders Walker Williams and Evan Stites-Clayton, the inspiration for Teespring came in the spring of 2011 when the two wanted to sell t-shirts to commemorate the closing of a local bar. Rather than investing in a bulk order of shirts in various sizes, the Brown University seniors created a website where interested parties could submit pre-orders with their size and payment.
Teespring’s eCommerce platform involves a high volume of financial transactions. This is not only because the company collects numerous payment receipts every day, but also because it also pays a commission on each designer’s campaign. With all these incoming and outgoing payments transactions, Teespring needs to ensure that all the data are captured correctly and accurately, and any possible errors that could otherwise lead to financial or reputational risk addressed immediately.
As a very successful business experiencing ever-continuing growth Teespring reached a crossroads at the start of 2015. The company realized that the combination of manual and semi-manual transaction reconciliations was neither scalable nor sustainable. The overall process was extremely time-consuming and already consuming five business days each month.
There were two choices, and only one sensible one: add headcount and additional manual controls, or leverage latest generation technology to deliver automation coupled with full accountability.
Teespring knew that automated reconciliation solutions existed on the market and started a project to look at the options. Armed with the experience of a senior Finance team member implementing reconciliation software at a prior company, Teespring accepted that it had to be very diligent with the evaluation process. Online research coupled with advice and feedback from other San Francisco Bay Area companies delivered a shortlist of possible providers.
What Teespring needed, and evaluated, was a platform to help achieve:
- Immediate automation of current manual and semi-manual processes handled in Microsoft Excel and Access.
- Support for significant and relentless business growth without adding headcount.
- A single platform where all activities including data matching, exception resolution, and account reconciliation could be instantly audited.
- Streamlining of the overall reconciliation processes with a reduction in the effort to speed period end close.
After looking at costs, return on investment (ROI) calculations, and usability of the two final shortlisted solutions, Teespring chose to implement ReconArt™ deployed in the cloud.
ReconArt™ provided exactly the scalability coupled with flexibility to handle ever-growing data volumes without inflating costs, and perfectly aligned with Teespring’s NetSuite ERP solution. Furthermore, it was clear that it allowed business users easily to set up new reconciliations – including creating data imports and multiple match rules – without IT or vendor intervention.
ReconArt™ was live and running on the first set of reconciliations within two weeks of the start of the implementation processes. At that point, all payments from online eCommerce activities were fully automated in the system. ReconArt™ integrates perfectly with Teespring’s internal sales database, as well as external feeds from credit card processors like Strip and PayPal. The second phase of the rollout of ReconArt™ encompasses the automated reconciliations of outbound commission payments.
Teespring adopted a highly intuitive and rapidly deployed solution in ReconArt™ which delivered immediate results:
- Significant time savings by automating previously manual reconciliations and excluding wasted time caused by previously researching timing differences.
- Reduced operational risk by minimizing exceptions and addressing them as soon as they occur.
- Ability to better view, collaborate and resolve exceptions including a full audit trail of all resolution activities.
- Enhanced audit capabilities by having research documentation immediately available online – all in one place, easily accessible.
- A scalable platform that, instead of crashing, encourages more and more automation to take place on it.
Furthermore, thanks to the user-friendly interface finance staff operate more efficiently and accurately with ReconArt™
As Jenn Pang, Senior Accountant at Teespring says
“After less than one month from project start my stress level has already gone down significantly. And it will only get better as we roll out ReconArt™ more and more.”