Optimization of the invoicing process

Context

The company we have helped has a lengthening billing period as business increases. Between product delivery and invoicing, there may be 3 to 4 months, depending on the period. The busier it gets, the closer we tend to the 4 months to invoice. It is increasingly difficult to manage cash flow and they must start choosing which vendors to pay first. The lead times for unpaid accounts in excess of 60 and 90 days are increasing because the same person is billing and collecting unpaid accounts. As the priority is invoicing, collection is set aside. Overtime is required to advance billing as much as possible. Pressure and stress increase, for the employee and the company.

The mandate

Review the invoicing process and reduce delays.

We first mapped out the current invoicing process, from product delivery to invoicing. This mapping made it possible to see:

  • The steps taken to issue an invoice
  • the people involved
  • duplication of tasks
  • non-value-added tasks that could be eliminated, such as double or triple checks.
  • Tasks that could be automated using the company’s various IT tools, like sending automatic emails, instead of having to recreate them every time and rewrite relatively the same things.

So, we redid the process. By questioning each step to ensure its value. The new process is much simpler (fewer steps) and takes less time. We have established indicators to see improvement. Monitoring of measurement indicators is done assiduously every month.

Results

  • Reduction of the billing period from 4 months to 2 weeks after delivery of a product!
  • There is no longer a cash flow problem.
  • The process is simple.
  • Increased motivation and employee engagement.
  • Improved communication and discipline.
  • Reduced stress and pressure.
  • Significant reduction in accounts not paid within 60 and 90 days.
  • Elimination of overtime for invoicing.
How do you get started?

It's simple, just start.