Case study
The client, their challenge
Our client, a global real estate investment management firm, faced significant challenges in their financial reporting process.
Their incumbent financial administration services provider relied heavily on manual Excel spreadsheets for consolidated financial reporting, which were not only time-consuming but also prone to errors.
As the business expanded, these inefficiencies became increasingly problematic:
- Manual processes could not scale with business growth
- Error-prone spreadsheets risked inaccurate financial reporting
- Underutilised Yardi accounting system limiting operational efficiency
- Multiple interconnected entities requiring accurate consolidated reporting
The firm needed a technology-driven solution that would seamlessly integrate with Yardi, their comprehensive property management software, to achieve efficient and accurate consolidation across their complex entity structure.
After evaluating their options, they turned to IQ-EQ for a solution.
Our solution
We undertook a detailed onboarding process with extensive discussions to clarify requirements and design the optimal system configuration.
We implemented a comprehensive Yardi solution that automated the consolidation process and enabled reporting under various accounting standards. This included:
- System implementation – acquiring Yardi licences and working with Yardi consultants to ensure alignment across the client’s business
- Custom configuration – designing the chart of accounts and creating tailored elimination rules, equity pick up mechanisms and currency translation to meet client requirements
- Advance modules – Installing the Forecast Manager module for comprehensive variance analysis across asset levels
“The integration of Yardi technology allowed us to develop tailored elimination rules and currency translation mechanisms, ensuring the system operates efficiently and meets the client’s specific needs, says Nikolay Kyosev, Fund Accounting Manager based in Luxembourg. “This technology has significantly reduced error rates and sped up the consolidation process.”
Beyond consolidation, we collaborated with the client to implement sophisticated forecasting capabilities:
- Long-term planning – Forecasting up to 10 years using automated budget generation based on tenancy data, occupancy rates, lease durations, void costs and other parameters
- Budget comparison – Comparing budgeted and actual figures, including consolidated accounts, at various levels
- Estimated reporting – Providing quarterly figures before quarter-end by combining actual data with budget data for missing or future months
- Accurate NAV reporting – Producing estimated consolidated Net Asset Values with greater accuracy across entities and minimal deviation from actuals
The project required close collaboration between IQ-EQ project managers, who oversaw coordination and timelines, and technologists, who concentrated on system configuration.
The future
The successful Yardi implementation delivered substantial improvements in efficiency and quality:
- Automated consolidation – seamless, automated processes significantly reduced the risk of errors associated with previous manual methods
- Rapid reporting and analysis – faster turnaround times support decision-making at various operational levels
- Deeper financial insights – advanced modules for budget forecasting and variance analysis provided comprehensive understanding of financial performance
- Scalable operations – technology-driven processes positioned to grow the business in a rapidly changing environment
“The technological enhancements we brought don’t just streamline reporting, they fundamentally improve the client’s decision-making capabilities,” says Karen Joi Dela Cruz, Assistant Manager, Fund Accounting at IQ-EQ. “This integration of technology into their operations has positioned them for future growth and adaptability.”
This strategic enhancement not only streamlined their reporting process but also ensured ongoing alignment with the client’s business objectives.
The relationship between IQ-EQ and the client continues to evolve, with plans for further automation and refinement of financial processes.
