Case Study: Oil and Gas Production Company achieves 95% reduction in accounts receivable and applies $600M in cash with Protiviti

Protiviti establishes an effective accounts receivable and collections function for an oil and gas production company

Protiviti was engaged by an Oil and Gas Production Company to establish an effective accounts receivable (AR) and collections function after a significant acquisition. The client faced a large backlog of transactions, an antiquated accounting system that forced extensive manual work, and insufficient accounting headcount and technical skill to manage the sudden influx of AR responsibilities.

Protiviti (working alongside Robert Half) deployed an experienced accounting team, set performance objectives, and quickly established processes to reconcile and process the backlog while building client-run AR and collections capabilities. The Protiviti-led effort applied more than $600 million of cash to sub-ledger accounts, reduced overall AR balances by 95%, corrected over 1,300 customer sub-ledger balances, improved AR aging by 50% in one year, identified root causes of large outstanding balances, and helped the client staff a sustainable AR and collections function.