Using 3 different systems meant that OTC had to rely on manual systems, resulting in limited access, lost time, and regular errors.
OTC Markets Group (OTC) is an American financial market providing price and liquidity information for almost 10,000 over-the-counter securities. The group has its headquarters in New York City. OTC-traded securities are organized into three markets to inform investors of opportunities and risks. They connect a diverse network of broker-dealers that provide liquidity and execution services, enable investors to trade through the broker of their choice, and empower companies to improve the quality of information available to investors.
OTC’s plans for the public trading of their stock on their platform made it clear that their current system was no longer fit for purpose. They were using a complex jigsaw of three disparate systems at the time (i.e. Softrax, SBT, and Excel sheets). Understandably, both external auditors and potential shareholders required that they implement a robust financial management system that could support timely reporting and allow for full audit controls.
OTC was managing customer cards, contracts, monthly billings, and revenue recognition through manual processes. The operational systems that processed customer entitlements were separately maintained with no automated feeds to the accounting systems. All changes were emailed to accounting and then manually entered into the system.
The accounting staff spent approximately six days each month generating and reconciling the monthly billings. The software billings and cash receipts account entries were then imported into a separate system that managed accounts payable and the general ledger. At month end, the general ledger balances were exported to the third system, Microsoft Excel, to be used as the basis for financial reporting.
LRCVB aims to streamline the invoicing process by consolidating billing from various entities into a single, easily comprehensible invoice for the customer. This approach reduces confusion and frustration for clients, making it simpler for them to make payments.
OTC was encumbered with manual processes for new client signups, existing client changes in service, and routine address changes. Data entry mistakes were common because of all the data entry required each day, thus requiring time-consuming review and reconciliation by finance and business unit staff. Their systems required automation to achieve efficiency and accuracy.
OTC’s entitlement system was developed independently from the back-office operations. Consequently, information was entered into each system separately, with no opportunity for cross-checking or referencing. Sales and customer service staff had no real-time access to contract, billing and accounts receivable information. In addition, the accounting staff manually compiled status reports for the executive team.
“When we do field a customer billing inquiry, we are able to more easily track down and resolve the error at the source point and correct it.”
— Tim Ryan, Managing Director, Head of Sales at OTC Markets
OTC evaluated several online software as a service (SaaS) providers. They quickly realized that SaaS subscription providers could not deliver the onsite implementation, training and support, and value-added services they would need to meet their needs cost-effectively.
To automate and integrate their billing and financial systems, they chose to replace their current system with Subscription Billing Suite. A solution that would solve all their challenges and give them the increased functionality they required. It also integrated seamlessly with Microsoft Dynamics, giving them a familiar interface to work within.
“I’ve long been a fan of Dynamics, and Subscription Billing Suite met and exceeded every feature of our previous solution. However, the factor that made this project a success is having a partner who augmented our internal integration efforts to help us achieve a seamlessly integrated solution.”
— Michael A. Scocca, Controller at OTC Markets
The majority of data entry error in Dynamics has been eliminated. Accounting staff’s time is better utilized on accounting activities rather than data entry tasks.
Batch approvals greatly reduce month-end re-classifications. The Accounts Receivable specialist can proactively manage customer collections and quickly customize collection reports for each sales department.
The CEO and other executives automatically receive daily reports, with drill downs of key information, including customer revenue trends, cash position, and comparisons to prior year results. These reports are scheduled to run at regular intervals and are tailored to each recipient’s needs.
Data is instantaneously fed to the fully integrated Dynamics system. As a result, both systems contain identical data, so the accounts team doesn’t have to worry about double-checking data on disparate systems anymore.
Many of the team were familiar with Microsoft interfaces, and so this expedited the learning process. With the consistent look and feel of Microsoft’s product lines, OTC staff quickly learned how to navigate the new solution from Binary Stream.
“Implementation of the solution was highly organized, knowledgeable and in tune with the industry best practices. We are very happy with the professionalism, superb project management skills, high degree of reliability and technical excellence.”
— Emilia Sherifova, Managing Director at OTC Markets
