Situation
- The client was a $200M women’s healthcare company
- The company had grown rapidly in the prior two years, primarily through acquisitions
- The inorganic growth, coupled with existing process weaknesses in revenue recognition, led to increased confusion and a lack of confidence in revenue figures and accounts receivable balances on the financial statements
- New accounting guidance had been issued, impacting the current policy’s compliance
Bespoke Solutions
- SLKone performed an assessment of key business processes; analysis of relevant data, interviews, and process reviews allowed the team to identify significant process gaps in revenue recognition
- Implemented a formal PMO structure and acted as the project lead on a new revenue recognition model at a detailed level (recognized revenue equals the estimated cash collections for each service)
- Created a suite of reports which leveraged the granularity of the revenue recognition model
- SLKone managed and validated outputs during a pilot period and trained internal resources to manage the ongoing process
Leading With Results
- Attained a <1% variance between expected and actual collections
- Improved revenue recognition by more than 2% compared to legacy methodology
- Reduced month-end close process by 5 days reduction specifically for revenue
- Achieved compliance with ASC 606, the new revenue recognition standard
- Increased visibility and analytics from improved data collection at the unit level and facilitates additional improvement opportunities