This posting in CPA Practice Advisor is from the co-founder of San-Francisco-based fintech startup Anduin, which specializes in automated solutions for cash cycle operations, something that we have been professing to members as a necessary step for many companies in the post-pandemic state.
The article makes reference to several studies/external papers and also leads to a link for downloading a white paper on the subject. So anyone interested should browse through and see if anything interesting. The audience seems to be accounting firms that might utilize AI-enabled (machine learning) software to improve their work cycles and resulting cash management. However, the gist of the message is applicable across multiple verticals.
‘Many accounting firms are still managing their financial back office with disconnected payment systems and outdated practice management software. This forces them to rely heavily on manual, administrative efforts to wrangle billing, collections, and payment processing. The broken cycle leads to lost revenues, slow cash flows, and exasperated partners – and as bad as that sounds, it’s far from the end of the story….Firms tend to overlook a major unintended consequence of poor billing practices: the impact on their client relationships. Like it or not, monthly billing is probably the most regular touchpoint you have with your larger clients, meaning the billing experience goes a long way toward shaping the overall client relationship.’
The piece goes on to discuss reasons why so many firms continue to be mired in paper-based financial and other work operations, with packed month end closings rather than a normal, ongoing digital flow of billing, acceptance , etc. As we have pointed out in many a posting, a main culprit is corporate inertia, which is essentially to keep doing things as they have always been done, because they seem to work just fine, even if terribly inefficient and often dangerous for client relationships.
The author goes on to point out the growing trend towards client demand for better experiences, or else. So more companies should be looking to modernize, and the sooner the better.
‘Moreover, digitally transforming your invoice delivery and payments process will create a far superior experience for your clients. You can differentiate your firm with a better work-to-cash cycle that helps your clients understand your value and allows them to pay quickly and easily. The frictionless and personalized experience will make them feel special, and you’ll achieve that elusive delight you’re aiming for.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
