Industry
Food and Beverage Manufacturing
Case study
The Madelaine Chocolate Company
How Payference Helped Transform Their Collections and Cash Flow Management
Employees
250+
Accounting System
Proprietary
About the Company
Since their inception in 1949, The Madelaine Chocolate Company has been unwaveringly devoted to elevating the exquisite taste and unparalleled quality of their chocolate.
Nestled in the heart of Rockaway Beach, New York, they take immense pride in being an American family-owned and operated company. For more than seven decades, their delectable chocolates have woven themselves into the fabric of American family life, a testament to their enduring commitment to delivering exceptional moments through the rich experience of their timeless treats.
Challenges
The Madelaine Chocolate Company faced some challenges in managing their collections and cash flow. Operating in a seasonal industry and relying on a non-standard ERP system that didn't offer sufficient business intelligence, the company struggled with visibility into their accounts receivables (AR) and accurate cash flow projections. Manual processing of credit card transactions was time-consuming and inefficient, impacting overall productivity.
Solution
Seeking a solution to address these challenges, David Reifer, the CFO, explored options from Payference and two or three other vendors, including High Radius and Yay Pay (Quadient). After careful consideration, The Madelaine Chocolate Company chose Payference. Several factors influenced their decision, including cost-effectiveness, robust reporting capabilities, and the absence of unnecessary features that other vendors offered. Payference emerged as the ideal tool to help track, note, and automate collections seamlessly – and assist with more accurate and real-time cash forecasts.
David Reifer appreciated Payference's implementation process, especially considering their non-standard ERP. The detailed and urgent approach taken by Payference in building the integration stood out to him. The implementation process was smooth and efficient, delivering on all promises made during the evaluation phase.
"I’m using the tool almost every day. It provides me with a visibility that I didn’t have before. It’s really made our Collections Manager’s job much easier as well.” - David Reifer - CFO
Results
Since implementing Payference, The Madelaine Chocolate Company has experienced significant results in both their collections and cash flow management:
Enhanced Cash Projections:The top feature appreciated by David Reifer was Payference's cash projection capabilities. Previously lacking clear visibility, Payference provides automatic cash flow projections over the next 3-4 weeks. David can now move beyond intuitive estimations and work with more accurate data.
Improved Visibility:
With the business being highly seasonal, the ability to compare the same month this year to the last proved invaluable. The use of dashboards became a routine for better monitoring.
With the business being highly seasonal, the ability to compare the same month this year to the last proved invaluable. The use of dashboards became a routine for better monitoring.
Efficiency Gains:
The Collections Manager, the primary user of Payference, found the tool instrumental in communicating business updates. Automated processing of credit card transactions is saving them at least an hour per day, reducing the manual workload.
The Collections Manager, the primary user of Payference, found the tool instrumental in communicating business updates. Automated processing of credit card transactions is saving them at least an hour per day, reducing the manual workload.
Reduction in DSO:
After a few months of leveraging Payference, there was a noticeable reduction in Days Sales Outstanding (DSO) due to their automated invoice due reminders and the streamlined processing of credit card transactions, making it much easier for their customers to pay invoices on time.
After a few months of leveraging Payference, there was a noticeable reduction in Days Sales Outstanding (DSO) due to their automated invoice due reminders and the streamlined processing of credit card transactions, making it much easier for their customers to pay invoices on time.
"We were processing most of our credit card customers manually. Each day, we would get a list of shipments, review it, and process each credit card individually. Now that Payference is integrated with our accounting system, we have it set up so that if the terms are credit card, it goes into Payference and the credit cards get processed automatically. It saves us at least an hour per day.” - David Reifer - CFO
Overall, Payference delivered on its promises, providing the necessary information and functionality. David would wholeheartedly recommend Payference based on the smooth implementation and the positive impact it had on their collections and cash flow management.
The Madelaine Chocolate Company’s adoption of Payference showcased the power of a tailored solution in addressing specific business challenges. The combination of enhanced cash projections, improved visibility, efficiency gains, and a reduction in DSO underscored the positive impact that Payference had on their financial operations.