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Invoicing related projects in Finance

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  • #50514

    MM
    Participant

    Hi All,
    I have recently been aligned with Finance deptt (BPO). I am yet to dirty my hands and see what all is being done and how it is being done.
    One of the focus points that I have got from my initial interactions is invoicing related issue. One of the metrics I was thinking about is RTY…
    Has anyone done a similar project? Any other project, lean or any initiative taken by anyone in Finance?
    Am intrested in gathering your experiences and thoughts for my new role.
    Thanks in advance – MM

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    #173673

    SiggySig
    Member

    In my experience with invoices, the two biggest issues I encountered were:
    – Cycle time to issue invoice after completion of service
    – Invoice Accuracy (as measured by credits/rebills)
    I’m not sure how RTY would help – find out what the biggest invoicing pain point is among the finance leadership and make it better. It’s really just that simple.

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    #173675

    Deanb
    Participant

    MMI suggest you also look at customer behavior. Payment lead time averages can be skewed by a small number late paying repeat customers. With this group I have seen these factors:
    -payment term discrepancies (vendor bid said 30 days while customer P.O. said 60),
    -lack of discounts offered for quicker payment (some customers are mandated by upper management to take all discounts),
    -lack of invoice detail (slowing down client approval for payment). If late payers are concentrated in your data, then talking to them may be one of your early steps.

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