Protiviti establishes an effective accounts receivable and collections function for an oil and gas production company

Protiviti establishes an effective accounts receivable and collections function for an oil and gas production company

oil and gas production company

 

A leading oil and gas production company needed to establish effective accounts receivable (AR) and collections functions while reconciling, correcting, and processing a backlog of transactions due to a significant acquisition. One challenge: the client company’s accounting department headcount and skillset didn’t support the sudden influx of AR responsibilities. A massive amount of manual efforts was required due to an antiquated accounting system from the acquired company.

Protiviti and Robert Half responded with a team of experienced accounting professionals. We were able to pull in experts in the specific technical accounting knowledge needed that the client previously had not been able to find. We established performance objectives and monitored and reported on our team’s progress as we quickly established a structure for processing the backlog AR entries. Once we’d handled the immediate concerns, we helped install client-run functions to effectively support their business on an ongoing basis. The turnaround was dramatic. The Protiviti-led team repeatedly met aggressive deadlines. We applied over $600 million of cash to sub-ledger accounts, reduced overall AR balances by 95 percent, and corrected more than 1,300 customer sub-ledger balances. Even more significant than improving AR aging by 50 percent in one year, we were able to identify the root causes of large outstanding balances. This effort and sense of urgency established a strong rapport with customers -- strengthening their relationships with our client -- and helped the client properly staff a new AR and collections function.