Automating AP for Family Real Estate: Erdman Holdings Case Study

Erdman Holdings is a family-owned real estate business that operates a complex business structure – and does so with a lean staffing strategy, presenting unique challenges when processing its large volume of monthly accounts payable invoices. 

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The company’s existing platform – Bill.com – simply didn’t offer adequate support, which is why Erdman Holdings decided to switch platforms and automate its accounts payable (AP) with Centime. 

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This case study looks at Erdman Holding’s challenges before implementing automated accounts payable processing from Centime and demonstrates how switching away from Bill.com significantly improved Erdman’s AP efficiency and streamlined their finance processes.

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A Company in Transition

Originally in the business of managing medical buildings, Erdman Holdings steadily transitioned its focus to commercial real estate. Amidst this shift, the company navigated the challenge of operating with a small financial team while managing multiple entities under its umbrella.

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In transition, yes – but still handling a significant workload. When it comes to accounts payable, Nickie Hanson, Controller at Erdman Holdings, was the only team member handling invoices. “It was a very manual process, as I entered and scanned every invoice myself and printed these invoices for a consultant to approve” – according to Hanson. 

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That wouldn’t pose a problem for a handful of invoices, but Hanson needed to process hundreds of invoices per month, with invoices approved across the several different entities that constitute Erdman Holdings. It soon became clear that the business needed a more efficient AP process to handle its high invoice volume, especially if Hanson was to have any  time to manage her other responsibilities. 

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An Existing Vendor Dropped the Ball

Before partnering with Centime, Erdman Holdings utilized Bill.com for their accounts payable workflow. Hanson, however, encountered several frustrations with Bill.com. 

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A key issue was its lack of integration with their QuickBooks accounting system, requiring manual re-entry of invoices into both systems. It meant that the primary challenge for Erdman Holdings, the inefficiencies in their AP process, was not being solved. This further hampered the small team’s ability to focus on other critical aspects of the business.

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Additionally, Hanson faced issues with Bill.com's poor customer service and lengthy response times, which further compounded the difficulties. These challenges prompted Hanson to seek an alternative accounts payable solution, leading to selecting Centime.

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Transitioning to Automated Accounts Payable 

“A pivotal factor in our decision was the superior customer support offered by Centime – which, right from the start, contrasted sharply with our previous experience” – according to Hanson. That included direct interactions with Centime's CEO, BC Krishna, which underscored the company's commitment to customer satisfaction and played a crucial role in Erdman Holdings' decision.

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Transitioning to Centime involved meticulous planning and execution, especially considering Erdman Holdings' diverse company structure. While the main company, Erdman Holdings Inc., transitioned smoothly, there were initial challenges in aligning the different entities and bank accounts under the umbrella. Hanson says that: “Despite the challenges, we were impressed how Centime’s tailored approach overcame the unique challenges in our accounts payable setup”.

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Improved AP Process with Centime

Now that they are live on Centime’s AP platform, Hanson says it has significantly improved Erdman Holdings’ AP process. She effortlessly enters invoices, gets approval from their consultant, and can then quickly make electronic ACH payments without having to print checks. 

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This new efficient accounts payable system saves Hanson about 20 hours per week, which allows her more time to focus on other critical business functions. 

Lastly, Hanson noted that Centime’s dedicated customer support has been hugely beneficial and a key advantage over Bill.com. She notes that Centime’s Customer Support team took the time to understand Erdman’s unique corporate structure, and was instrumental in tailoring Centime accounts payable to their needs.

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All-Around Benefits

Post-implementation, Erdman Holdings has transformed their accounts payable process. By introducing electronic payments through ACH and streamlining invoice approvals, they have significantly boosted operational efficiency. The platform's user-friendliness enabled swift adaptation and seamless integration into their daily routines.

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The transition to electronic payments accelerated transaction processes and drastically cut down on manual tasks such as writing checks. This efficiency not only benefited Erdman Holdings but also their vendors, who enjoyed quicker payment cycles – thus positively affecting vendor relations.

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Another key benefit for Erdman Holdings was the remarkable time savings – about 20 hours per week. This efficiency gain allowed Hanson a more flexible work arrangement, including remote options, and freed up time for the team to concentrate on other critical tasks.

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Conclusion

Erdman Holdings' transition to Centime's AP automation platform marked a significant step forward in the company’s operational efficiency – and a critical step as the family company pivots into a new chapter. 

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The reduction in manual processes, gains in time savings, and improved vendor relationships are a testament to the effectiveness of Centime's solution and Erdman Holdings' experience sets a positive precedent for other companies facing similar accounts payable challenges.