Strategic finance operations. Two tips to increase efficiency.
Everyone is busy and stretched to do more with less. As we have time to plan, it's always important to hear from peers on how they strive to become more-effective, strategic finance leaders through process optimization.
- Eliminate data latency issues. Build a "system-of-systems" that focuses on eliminating hard-to-trace data issues.
Minimize the “distance” your data travel between an order and your revenue recognition process. If internal systems, or a CRM, export data which in turn needs to be manipulated before billing can occur, you have an opportunity to increase efficiency.
- Resist rigidity. Identify infrastructure that can absorb the complexity of deals created in an ever-changing sales environment.. Define process that can accommodate custom terms and pricing if you are selling to B2B clients. Endeavor to create systems that handle the spectrum of contracts that represent your current business as well as your imagined future state.
Forward-looking partners to the C-suite automate accounts receivable workflow
Automation of sales-to-finance workflow (accounts receivable, rev rec, reporting) will free up your resources to be more strategic to the rest of the business.
Slater Latour, VP Finance, Springboard Retail [0:57s]
Spend more time analyzing:
- Cash trends
- Product mix and performance
- Utilization rates
Reduce internal and external blockers by automating AR and revenue recognition workflows (explore some case studies of companies who successfully reimagined their process).
Michael Spitzer, CFO, BAO Systems [0:17s]
Pricing the impact of billing data latency, inaccuracy, and rigidity...
Depending on the size of your organization, the tools, and the people you ask resolve complexity, you may be losing $100,000s per year by "making it work."
Hard costs related to AR problems:
- Revenue leakage/missed revenue
- Hours spent validating numbers before sending to customers and investors
- Tech stack bloat to “fix” data issues
Softer costs associated with manual or inefficient billing:
- Upset customers
- Demotivated employees
- Opportunity costs due to finance teams in reaction mode, not forward-looking