One of the biggest contributors to reduced cash flow is a delayed billing cycle. In a business that makes its money through Professional Services, a pinch point is often the bridge between operations and the finance department.
How Does it work?
As more business units have to account for their own gross profit, time is being split in more complex models. Time must be categorized between one-off project work, service contract and other forms of recurring revenue, block time and other creative new billing scenarios.
The result is often a very inefficient workflow as operational managers sort and approve time, then it goes to accounting often in a different format or system all together, for more sorting and finally billing and costing. All of these steps contribute to billing errors, wasted effort, missed revenue recognition opportunities and poor customer experiences, not to mention the outside world’s perception of how well organized your company is.
Looking at your entire process holistically; building out tasks, resourcing them to maximize profit, deployment, time capture with all details being system driven, reconciliation and billing automation all contribute to a shortened billing cycle with new levels of accuracy resulting quicker collection of cash.