Case Study : Mixam by e-conomic
As the UK printing service Mixam Ltd grew, so did their pile of unpaid invoices. With a growing debt and increased customer demands, it soon became evident that the company needed a flexible and easy-to-use accounting solution.
By choosing an online accounting system, Mixam were able to choose the best solution to their needs without being constrained by location or technology.
Moreover, the decision to put credit control in the hands of TAK Credit Management meant more time for the company's core business.
As with many businesses, in the early days, the attention of the directors was focused outwardly on winning and retaining clients. Mixam did this very successfully and the company grew rapidly.
When they felt they could come up for air, the management team recognised that during this intensive period of growth the focus on expansion had meant that other business processes had been neglected. In fact, it came to light that there was a problem with unpaid customer invoices, which in total amounted to over £100,000 and dated back nearly a year.
Mixam decided to seek the services of a specialist collection agency to help resolve the existing problem and ensure that it didn't happen again. Mixam didn't want to waste any more time so it was important to find a service provider who could hit the ground running and tackle the unpaid invoices straight away.
Mixam was already familiar with online accounting provided by e-conomic. They chose the software because, being web-based, it was accessible from anywhere and provided instant and up-to-date access to their accounts. And when it came to choosing its credit control partner, Mixam found that e-conomic was the perfect link in the chain.
After assessing the options, Mixam narrowed its search down and selected TAK Credit Management. TAK presented a compelling proposition combining excellent references and a practical approach to resolving Mixam's brief.
TAK's comprehensive service covered everything from providing credit reports through to managing the legal process for pursuing the worst cases. The directors also liked the fact that its business model was scalable to meet the future requirements of Mixam's growing business.
TAK Credit Management have offices in London and Krakow with the Krakow service centre being responsible for the Mixam service. TAK was easily able to sign up to e-conomic over the internet and could join Mixam and its accountant in accessing and updating information in real-time.
This flexible way of working ensures that all parties are always kept up to date and minimises administration and reporting time. Ultimately, TAK Credit Management can operate seamlessly as part of Mixam's business even though they are physically hundreds of miles apart.
Mixam has been delighted with the results to date. After three months of service, TAK-Credit Management was able to reduce the outstanding debt by 65% - equivalent to an additional £65,000 in the bank. Customer queries were solved more quickly, invoices paid earlier and debtor days reduced.
Mixam gained the benefits of a large-scale, professional credit control department including a dedicated credit control manager without the related risk of direct employment, and at a lower cost.
With credit control and online accounting solutions in place, Mixam can now focus on servicing its partners and growing its business.
Rami Zetuny, Mixam Director said: "Handing over responsibility for credit control to TAK-Credit Management has meant that we have been able to concentrate on growing the business, safe in the knowledge that the sales ledger would be managed in a pro-active and professional manner. This has been particularly important recently as the directors have been busy moving Mixam's print facilities to the UK.
"When it comes to e-conomic, as an online business ourselves, it makes total sense that our accountancy software should harness all the benefits of the web. I don't like servers - the costs of running something on a web browser are far cheaper - and I love the fact that invoices can be done by email.
"e-conomic has been so beneficial in facilitating a smooth partnership with TAK and it's very intuitive and easy to use. In fact, I've just taken on a bookkeeper who had never used e-conomic before, and he was up to speed in no time at all.
"We are now confident that we have the best possible accounting and credit control solutions in place, so we can concentrate once more on giving great service to our clients and growing the business."
e-conomic (www.e-conomic.co.uk) is an online accountancy service, part of a sector of companies described as Software as a Service (Saas) which means that companies pay a simple monthly subscription for their staff to access the system through a web browser and an internet connection.
SaaS takes away a lot of the pain associated with IT management, such as installation, backups and upgrades, and it's easily accessible. This is particularly beneficial for smaller businesses, especially those without an in-house IT team.
With e-conomic, there are no upfront installation costs, only a monthly subscription which includes unlimited support. The basic subscription of £13.50 includes all the core finance modules needed by a business - general ledger, accounts payable, accounts receivable and electronic invoicing - plus a number of innovative time-saving features such as automated bank reconciliation and direct integration with Microsoft Excel. Additional modules are available, including stock management, project accounting and document scanning.
External accountants/bookkeepers receive instant access to their customers" accounts which means that they have much more control than would ever be possible with PC-based software. Access for accountants/ bookkeepers is free of charge.
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