CASE STUDY

Madison Resources Saves Money and Improves Efficiency By Replacing Lockbox Services with DadePay

Madison Resources

Madison Resources’ business is built on partnerships. Based in Portsmouth, New Hampshire, the company provides financial and operational support for staffing agencies of all types and sizes. With the need to manage multiple clients—and its clients’ clients—reconciling and applying payments is a complex process.

Madison Resources’ over-arching objective is to help make its clients more profitable but using their bank’s lockbox services proved costly and inefficient as it spent an excessive amount of time on keyed exceptions. Madison Resources’ AR staff needed a better process to post their receipts and the payments received from their agencies’ clients.

Madison Resources implemented DadePay Invoice-to-Cash AR Automation in 2017 to produce better and more efficient posting files, streamline their workflow and improve customer service.

Challenge

Madison Resources’ business model makes managing account receivables and incoming payments more complicated than many other businesses. Aside from the need to reconcile and post check and electronic payments it receives for the services they provide to clients, they also process funding payments to be applied to client payrolls and the payments its staffing agency clients receive from the companies they serve.

Using bank lockbox services proved costly and inefficient as it spent an excessive amount of time correcting posting errors and tracking down and correcting erroneous payments.

“We had a lot of issues with lockbox services, so we were looking for a way to improve efficiency,” said Sara French, cash application supervisor at Madison Resources. “Most of our payments are still received by check, so we needed a more accurate and efficient auto-posting of our payments than outsourcing delivered. DadePay allows us more control over posting files. Now we have time to focus on more complex payment processing, like wires and ACH payments. We’ve phased-out our lockbox keying service, which significantly reduced our costs from high fees, and also improved efficiency by eliminating the time spent researching errors caused by keying errors.”

Madison Resources

INDUSTRY

  • Payroll funding, business process outsourcing and back-office outsourcing solutions for staffing companies

TECHNOLOGY

  • DadePay Cash Application Automation
  • ePayment Customer Portal

KEY BENEFITS

  • Single platform with advanced technology
  • Auto-Validation of payments
  • Increased staff productivity
  • Eliminated costs and errors associated with lockbox services

KEY RESULTS

  • Increased operational efficiency
  • Reduced costs on lockbox services
  • Able to expand their market with current staffing level
  • Distinct competitive advantage
  • Elevated customer experience

Solution

Madison Resources implemented DadePay Cash Application Automation to benefit from the solution’s invoice matching and auto-posting capabilities as well as to provide a better customer experience to its clients.

With the addition of the DadePay ePayment Customer Portal, Madison Resources has benefited from a unique competitive advantage in partnership with DadeSystems.

“We work with our clients in the background, so it was essential when we implemented the ePayment Customer Portal that everything was set up using each client’s branding,” said French. “Working with the DadeSystems team, we had to think through
all of the functionality any client could want and create a turnkey implementation. while still offering a certain level of customization and branding. Now, setting up the payment portal for each new client is done by our staff quickly and easily and is a natural part of onboarding every client.”

Central to leveraging this competitive advantage is adoption and utilization by Madison Resources’ clients.

“All our client-facing staff takes every opportunity to direct clients to the ePayment Portal,” said French. “It’s an easy sell because it’s easy to use, provides convenience and the information they need, and the end-users have no idea that Madison Resources is the company providing the service.”

Madison Resources provides a full range of training and support to staffing agencies using the ePayment Customer Portal, including training manuals, reference documentation and email support.

Results

In addition to saving time and money by phasing out bank lockbox services, Madison Resources gained a unique competitive advantage and elevated its customer experience.

“There may be one other competitor we’re aware of out there offering a client-facing payment portal, but overwhelmingly, our competitors do not offer this benefit,” said French. “It’s another way we can offer more options and convenience for our clients.”

The company has also been able to grow its business without adding new staff or even needing to replace outgoing staff.

“Because of less time spent manually processing payments, we’ve been able to focus more strategically as well as do more with
the same, or even fewer staff because we haven’t had to replace outgoing staff,” said French.

Madison Resources is built on the foundation of serving their clients in true partnership and appreciates the same level of commitment and partnership it receives from DadeSystems.

“The support team is wonderful, I cannot say enough good things about them,” said French. “The customization project for the ePayment Customer Portal was complex and had the potential to be complex, but we have no complaints about the process because we had very interactive meetings. Their developers could build enhancements on-the-fly while we were meeting so we could see the impact of enhancements in real-time. They’ve always been
able to accommodate requests and answer questions, and their communication is always impeccable.”

Now that’s a level of partnership that you don’t see every day.

“Because of less time spent manually processing payments, we’ve been able to focus more strategically as well as do more with the same, or even fewer staff because we haven’t had to replace outgoing staff in some instances.”

Sara French
Cash Application Manager
Madison Resources

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