Titan Distributors is an almost exclusively internet-based eCommerce distributor based in Collierville, Tennessee in the United States. The company sells various products across several websites as well as eBay, Amazon, and other third party marketplaces. This highly successful company has been experiencing an annual growth rate of over 60% for the past several years.
Prior to implementing ReconArt™ Titan had very little ability to do a full reconciliation of its payment accounts. With hundreds, growing to thousands, of daily transactions across multiple sales channels and payment processors, the company needed to reconcile all payment accounts both inbound and outbound.
It had become a nightmare to try to break these records out using Microsoft Excel, and Titan needed a rapid-to-deploy and easy-to-implement solution to this ever growing problem. Titan had no adequate systems of control to verify that it was being paid for all orders processed through third party payment processors, or to flag unapproved refunds. First of all, it had to find a way of automating the transaction matching process to make this even possible. This included data from credit card processors as well as PayPal, Amazon, and other payment accounts. Without this, the only reconciliation that Titan was able to do in a reasonable amount of time was a bank checking account reconciliation. Other related goals were to increase visibility over all cash accounts, and to quickly and accurately identify and then resolve exceptions.
Jeff Hill, Titan’s Controller sums up the challenge the company faced:
“Although we completely trust our employees, the lack of transparency was an area where we were very susceptible to theft. Our rapid growth, and continued growth plans, meant more employees and more opportunity for mistakes. The increasing number of transactions meant that if we were going to move away from vulnerable spreadsheets we needed to do it now, and automation made more sense than adding additional staff. We decided to go with ReconArt™ as it was a robust and intuitive standalone reconciliation software system that was scalable and adaptable as we continue to grow.”
Despite its dedicated accounting staff, main processing of reconciliations for Titan were being performed manually. Therefore Titan was looking to implement an automated reconciliation solution to help them meet the following objectives:
- Automation of current manual processes that would lead to time and source savings.
- Reduce operational risk by moving away from Excel spreadsheets.
- Increase visibility and control over cash accounts.
- Quickly and accurately identify exceptions.
- Scalability to handle ever increasing transaction volumes, as the company grows
After an evaluation process, ReconArt™ for NetSuite was selected based on its ease of use and scalability to support both growth and all future reconciliation needs. This cloud-deployed solution was implemented and fully live in a matter of weeks.
“We decided to go with ReconArt™ as it is a robust and intuitive system that was scalable and adaptable as we continue to grow,” continues Jeff Hill.
Upon initial implementation, all payments accounts were being reconciled within the ReconArt™ system. The software is completely integrated with all other systems and data sources that Titan interacts with, including NetSuite for its internal data sources, and CyberSource, PayPal, Amazon Payment Account, and Bank of America for its external feeds.
The adoption of ReconArt led to numerous immediate improvements and efficiencies:
- Visibility of all transactions affecting cash balances and peace of mind that account balances are being accurately reported on monthly statements.
- Significant future cost savings by being able to utilize current personnel processing more transactions and handling more reconciliations, thereby eliminating the need to hire additional staff.
- Gaining insight into fees that different payment processors charge and a better understanding of fees that different sales channels automatically deducted.
Titan has achieved a great working relationship with ReconArt’s specialists, and users find the product intuitive, and very easy to operate the daily functions.
Nothing, however, sums up the financial benefits that ReconArt™ for NetSuite is already delivering. While seeing a number of future automation opportunities with ReconArt™, including the automated posting of fees to the NetSuite General Ledger, Jeff Hill, Controller at Titan calculates
“We are saving a great deal of expense year-on-year. The annual cost of ReconArt™ is well under ten percent of what it would cost us in labor to undertake the same account reconciliation activities manually.”