The Problem
This small outsourcing company depended on its cash flow to keep the doors open. The President looked at Accounts Receivables and was aghast that payments from a major customer were averaging 40 days after the work was completed. If it weren’t corrected quickly, staff payroll could be delayed and long-term growth stunted.
The Solution
The President confirmed with the major customer that slow payment was not an indication of client dissatisfaction. That meant that its own internal processes were slowing things down. Analyzing the workflow, I could see several factors impacting the payment timetable, from time-capture through invoicing and payment processing.
Knowing that staff buy-in is crucial for changes to become permanent, I facilitated discussions to review the objectives and walk-through the three primary processes. Everyone agreed to implement specific improvements, within a week of my involvement. Revised procedures and controls were put into practice.
The Result
The average payment processing time was reduced to 28 days after billing. The President was greatly relieved, able to focus once again on growing the company.
The President said, “Carolyn is very good at identifying problems and obstacles that need to be addressed.”