Case Study: Developing a Subscription Tracking Database
for Cost Allocation
Project Brief
A department within a firm sought to track subscription services assigned to users and group this data by departmental cost codes. The goal was to streamline the process of allocating subscription costs across the correct cost codes, rather than having the department absorb all costs. This summary would accompany vendor invoices sent to accounting for accurate cost distribution.
The Challenge
To build a functional database, we needed to identify the required data fields and structure. This involved collaboration with multiple stakeholders, including:
- Department Managers: To understand operational needs and user assignments.
- Accounting Group: To ensure the database aligned with cost allocation processes.
- Subscription Vendors: To gather accurate information about services and invoices.
Gathering a comprehensive set of data requirements was essential for creating a database that met all stakeholders’ needs.
The Solution
Phase 1: Initial Database Development
- We worked closely with stakeholders to define the necessary data fields and relationships.
- A database was built to track subscriptions, user assignments, and departmental cost codes.
- The database generated detailed summaries to accompany vendor invoices, ensuring accurate cost allocation across cost codes.
Phase 2: Contract Management
- After the initial implementation, the database was enhanced to track contract terms and alert the department to renegotiate contracts before their renewal dates.
Phase 3: International Expansion
- The scope of the database was expanded to include the department’s international offices, ensuring global consistency in subscription tracking and cost allocation.
Phase 4: Cash-Flow Reporting
- At the request of the VP of Finance, we developed cash-flow reporting capabilities within the database. This provided real-time insights into subscription costs and their impact on departmental budgets.
Results
- Streamlined Cost Allocation: The database automated the process of grouping subscription costs by departmental cost codes, saving time and reducing errors.
- Proactive Contract Management: The addition of contract tracking allowed the department to renegotiate terms proactively, avoiding unnecessary costs.
- Global Consistency: Expanding the database to international offices ensured a standardized approach to subscription tracking and cost allocation across all locations.
- Enhanced Financial Insights: Cash-flow reporting provided the VP of Finance with valuable insights into subscription spending, aiding in budget planning and decision-making.
Conclusion
This project highlights the power of a well-designed database in improving operational efficiency and financial management. By addressing the department’s evolving needs—from cost allocation to contract management and cash-flow reporting—we delivered a scalable solution that supports both local and global operations.
