Improving Supply Chain Accounting Accuracy for a U.S. Building Materials Distributor
This case study highlights how a leading U.S. eco-friendly building materials distributor strengthened its supply chain accounting processes using KnowVisory Global’s dedicated accounting support for Manufacturing Industry. Read it to learn how our team helped the client improve accounting accuracy inside NetSuite, gain better visibility into product-level margins, and streamline month-end financial reporting. They partnered with KnowVisory Global to support new client engagements without adding in-house headcount or disrupting ongoing operations.
Introduction
The client is a leading U.S.-based manufacturer and wholesale distributor of eco-friendly building materials like sustainable flooring, decking, and turf. Based in Florida, they import raw materials and finished goods globally, distributing them to contractors and trade dealers. They maintain a sharp competitive edge by offering factory-direct pricing and fast, next-day delivery.
However, as sales and import volumes scaled, managing back-office accounting became a major operational bottleneck. The company needed an expert service provider who could bring more structure, speed, and accuracy into their accounting processes.
The Problem
With inventory quickly growing, the client’s onshore financial team was facing several operational and accounting challenges like:
- Delays in shipping data due to invoice mismatches and stalled vendor payments.
- Hidden profit margins due to broad overhead tracking
- Unreconciled books and accounts
- Manual bookkeeping errors
- Slow month-end closes
Decision to Transition
The lack of a streamlined accounting workflow was creating inefficiencies in the supply chain accounting process and impacted reporting accuracy. The client needed a specialized finance partner who could help them with:
- Inbound shipment data entry and document compliance
- Accounts Payable (AP) and landed cost allocation
- Accruals, deferrals, and adjusting journal entries
- Balance sheet account reconciliations
The Challenge
Working on this project came with its own set of challenges. Our accountants had to:
- Quickly adapt to the client’s international supply chain processes
- Ensure proper cost distribution
- Implement strict data compliance controls
- Maintain uninterrupted communication loops for daily warehouse receipt processing
The Solution
We implemented a structured accounting and supply chain finance support framework. Our team covered both the Procure-to-Pay (P2P) and Record-to-Report (R2R) processes to improve transaction visibility and financial accuracy. As part of the engagement, our team:
Phase 1: Procure-to-Pay (P2P) & Logistics Synchronization
- We streamlined inbound shipment accounting by extracting data from incoming ISF files, updated purchase orders (PO) with shipping and container data, and attach relevant documents (invoices, packing lists, bill of lading) in the ERP
- Built a standardized process for identifying incoterms and record goods-in-transit entries where applicable
- Booked AP invoices for materials and landed costs, ensuring proper allocation
Phase 2: Record-to-Report (R2R) Financial Control
- Prepared and posted accruals, deferrals, and adjustments based on provided inputs
- Performed balance sheet account reconciliations, resolving issues with the onshore team as needed
- Assisted in reviewing monthly financial statements and flagging discrepancies for correction
- Maintained organized supporting documentation and standardized accounting workflows to improve operational efficiency and reduce reporting gaps
The Result
Conclusion
- With our dedicated accounting support and process optimization, the client was able to improve operational efficiency and financial control across its accounting functions:
- 100% accuracy achieved across international cargo tracking and NetSuite asset updates.
- 40% faster month-end close, removing immense pressure from the core onshore finance team.
- Improved landed cost allocation, providing management with hyper-accurate product margin data for pricing decisions.
- Complete balance sheet reconciliations delivered on time every month with minimal onshore supervision.
- Significant structural cost savings by utilizing a scalable offshore team instead of expensive domestic hiring.
- As supply chains and procurement operations continue to grow more complex, manufacturers and distributors need accurate accounting processes and structured financial workflows. Without it, even small inefficiencies can compound and affect overall business performance.
- By supporting both procurement accounting and financial reporting functions, we helped a client build a more structured and efficient finance process capable of supporting long-term operational growth.
- Looking to streamline your accounting operations and improve financial visibility? Connect with KnowVisory Global today to explore how our outsourced accounting experts can support your business functions.