How Business Process Automation works at LeaseLink?
LeaseLink is a fully automated online payment method for entrepreneurs. It allows you to complete the lease formalities in 100% via the Internet: for any purchases with a value from PLN 1 to PLN 50,000 you might select from anywhere for 24 hours a day.
The result of the automation of business processes developed for LeaseLink by our software house is the increase in the value of its business from PLN 5 to 67 million.
LeaseLink was a fin-tech Start-up that created an automated on-line leasing process. The designed system was purely transactional: it supported the operational part of the leasing process, such as accepting applications online or calculating schedules.
At the initial, small scale, the bookkeeping was handled fully manually. The system was handled by just a few people. This was why the creators and employees of LeaseLink watched the entire process and were able to modify, improve and consecutively optimize the business on an ongoing basis.
Finally, the scale of the project began to grow. As an external investor invested in it, pumping funds into sales operations, marketing and further technological development of LeaseLink, the Start-up boosted its performance.
The increase in sales of leasing services and the need to adjust accounting to International Accounting Standards made the accounting system complicated and were the reasons why automation of individual parts of the process became indispensable.
Automation of Invoice Accounting
As it turned out that it was necessary to process not a dozen, but several dozen, several hundred, and then several thousand invoices, it became necessary to replace a lot of employees who would be able to process such a quantity of invoices with a robotised tool.
At the moment, Middleware System that we created, integrates 22 thousand invoices per month. 1 invoice is accounted within 200 milliseconds. For comparison: one person performs this operation for about 2 minutes. So, if our machine updates currently 22 thousand invoices a month, then to our software it takes less than 1.5 hours to process this amount, while it would take almost 5 weeks for a human to process it.
Transmission and Automation of Data, Agreements, Applications and Transactions
Middleware System allowed to automate data transfer processes between the Back Office LeaseLink software and the financial and accounting software – i.e. a system that has processed not several, but as many as several thousand agreements per month.
Based on data from the LeaseLink Back Office system, we have completed automatic accounting in line with International Accounting Standards. Automatic accounting is carried out to the settlements and transactions stage: our Middleware System supports the accounting system at the level of the general ledger and the subsidiary ledger.
At this point, our Middleware System supports more than 92,000 accounting entries per month. One person is able to book up to 200 invoices in one day manually. With the current business scale, entering invoices to the financial and accounting system and completing banking operations, terminations, renewals, accruals and reconciliations, schedules … would require employing 15 additional people – instead of 1 automated tool.
Automation of a Software Accounting Processes
Leasing systems are usually very complex and they allow to make many types of leasing, including operational, financial, with buyout in different currencies, with different fees, with different type of fixed assets settlement. They support various leasing products.
LeaseLink operates the other way round: it has one simple leasing product and sells it in a very large amount in very low denominations. Therefore, it was in need of a simple and fully automated process as a condition of profitability of concluded agreements so that the employee’s labour costs would not exceed the amount of margin obtained under the lease.
With the automated process, the role of accounting in LeaseLink has changed dramatically: employees no longer waste time on accounting a pile of documents. What they are only focused on is verifying and analysing data or handling incidents. In addition, due to the fact that the data is not entered manually, the number of errors has been reduced to minimum.
On the basis of a huge amount of data provided, analyses are carried out in terms of the implementation of KPIs, i.e. indicators that LeaseLink wants to achieve. Our automated financial and accounting system, which is the general ledger and subsidiary ledger, is an excellent source of information necessary for financial analyses.
The data warehouse system we made using ETL tools is made as simple as possible to complete just the necessary functions, which is a guarantee of its clarity and effectiveness. It presents the profitability of agreements, ageing of receivables and the condition of the entire business. With these functionalities, people who decide on how the business develops have insight into the company’s condition on an ongoing basis, and may watch how it develops and may navigate it accordingly.
LeaseLink did not find on the market a ready-made solution for its leasing system. With a dedicated system created by our software house, their project can be continuously scaled and rapidly developed.
Having been operated for three years, LeaseLink has over 20,000 customers and has over 70 million of operating leasing portfolio, a number of awards confirming its innovativeness and appreciating its user experience.