800K in Lost Revenue Recovered Using SMART

MID-market manufacturer

400+ customers

1 receivables solution

The Challenge

In any business, ensuring accurate billing is paramount, not only to maintaining cash flow but also to upholding trust with clients. Recently, TCD identified and recovered a substantial $800,000 in revenue for our client that had gone unbilled due to a formula error in our client’s billing process. Here’s a look at how we uncovered this discrepancy and addressed the issue.

Initial Discovery
Our work began as part of a routine billing audit. During this audit, our collections analyst compared the client’s latest billing reports against SMART, our proprietary A/R Management tool that combines database, workflow, reporting, and automation capabilities to track all invoicing data. The side-by-side comparison with SMART revealed an unusual discrepancy between expected and billed amounts, indicating that some invoices did not appear on the billing reports. This prompted a deeper investigation to determine the root cause of the missing amounts.

Uncovering the Error
Our team meticulously analyzed the billing data and identified the root cause: a formula error in the client’s billing system. This formula was unintentionally truncating data after a certain line count, and credit values were being inadvertently excluded. This glitch had caused nearly $800,000 worth of invoices to slip through the cracks, undetected by the client’s regular billing checks.

The Solution

Taking Corrective Action
With the error identified, we quickly developed a corrective strategy. Our team conducted a thorough audit of all recent billing entries. We recalculated and reprocessed each report, ensuring the corrected formula accounted for all unbilled revenue.

With the revised reports in hand, we collaborated with the client to transparently communicate the findings to their customer, providing accurate invoices and documentation for payment processing. Thanks to our prompt actions and commitment to precision, the client’s customer was able to verify and process these invoices, allowing the client to successfully recover the previously unbilled revenue.

The Results

A Lasting Lesson in Diligence
In addition to recovering $800,000, our client gained valuable insight into the critical role of diligent oversight in preventing revenue loss. By leveraging our SMART technology alongside our dedicated team, we were able to identify and rectify the errors that would have otherwise impacted their bottom line. This case highlighted the unique value TCD provides through a blend of technology and human expertise. Moving forward, our client has a renewed appreciation for the role our team and tools play in ensuring every dollar is accounted for, and we continue to partner with them to prevent future issues.

Improve your receivables

1.800.451.0164 (US-Canada)

1.651.451.0164 (International)

INDUSTRIES SERVED

0 +

COMPANIES WORLDWIDE

0 +

Measurable Results

Optimize AR

The Credit Department is the first and only true credit management outsourcing firm in the U.S., managing trade receivables for companies worldwide. We have worked in more than 100 industries to bring about change and dramatic results in our customers’ order to cash cycles.

As your strategic business partner, we become a cohesive and transparent component of your daily operations — whether you have an internal credit department or not. We also work with private equity groups to increase the value of portfolio company receivables to maximize cash flow from the asset. Our solutions integrate easily and cost-effectively with corporate systems within 24-48 hours.

If you’re ready to take control of your trade receivables management — and gain access to real-time cash flow forecasting — it’s time to contact The Credit Department.

Cash Flow Optimized

Proactive AR Management

SMART

Managed AR

$15M Dispute Process Transformation