The key to managing working capital and supporting cash flow is to streamline the financial components of the entire project lifecycle. From initial scoping and kick-off, through purchasing and invoicing, to final delivery and payment, streamlining these processes ensures that you are capturing all costs, invoicing accurately, and getting paid for all services in a timely manner.
You may already be using WorkBook to manage job costs, but if you’re still using a number of different tools and spreadsheets to provide you with a picture of your agency’s financial performance, and then isolating that responsibility to a single member of the team, then you’re familiar with the bottlenecks and delays that can block cash flow and hinder your agency’s sustainability. But by integrating the entire project lifecycle into WorkBook for a single source of truth and giving Project Managers and Client Teams the ability to help improve financial data, your team can work together to streamline the process, manage working capital and boost cash flow.
It can be challenging for Finance Teams and Project Managers to work together to efficiently manage working capital, especially for a distributed team, but by empowering your team to understand their responsibility to the big picture and providing them with the right processes and tools to get it done, it is exponentially easier to improve cash flow, regardless from where your team members are working.
Empower Your Finance Team:
Improve the Quality of Financial Data
As the ultimate gatekeeper of all financial transactions, the Finance Team is responsible for making sure data is verified and accurate. By establishing approval workflows for things like timesheets, POs, invoicing, WIP updates and revenue forecasting, you can delegate authority to other members of the team, which empowers the Finance Team to improve the quality of that financial data, while maintaining total control.
Focus on WIP, Accounts Payable and Accounts Receivable
Once timesheets have been submitted and approved by the Project Manager or Client Team, POs have been reconciled and invoices have been sent, WorkBook’s finance module allows you to get complete transparency over Creditor and Debtor status, and your WIP position, from the same place.
Empower Your Project Managers and Client Teams:
Ensure Proper Contract Terms
The ability to manage job costs effectively and influence steady cash flow, begins with the proper contract terms. If you don’t build the Price Quote with an approved price list from the beginning or fail to put billing agreements in the Statement of Work (SOW), you may reduce your ability to accurately invoice services in a timely manner. By creating standard contract templates that outline these terms, and then creating billing schedules accordingly, Project Managers and Client Teams can avoid delays and ensure deadlines don’t get missed.
Verify Financial Data
As the persona accountable for all aspects of the project, Project Managers and Client Teams should be responsible for verifying financial data as it is entered. This saves valuable time for the Finance Team, accelerates the approval process and promotes steady cash flow.
By establishing approval workflows for things like timesheets, POs, invoicing and revenue forecasting, Project Managers and Client Teams become accountable for their role in the cash flow process. As an approver in these transactions, they can ensure time is being registered correctly, extraneous costs are prevented, and invoices are sent on time. That way, they can spot potential issues and take preventative action much earlier in the process.
When you empower your people to manage working capital and control costs you can:
- Ensure the accuracy of all financial data
- Avoid invoicing delays and get paid on time
- Improve cash flow and sustainability