Your Accounting Firm’s Ultimate 18-Step Workflow Process [Infographic]October 19, 2017
Consider a Mentor to Guide You In The Right DirectionOctober 27, 2017
There are three components we need to consider to improve cash flow in an Accounting firm:
- How profitable your firm is
- Your WIP time frame and your invoicing process around that
- Your collection process with money
When you get all three in sync, you’ll get better, more stronger and effective cash flow. In this article, we will focus on two things - driving down your days in work in progress and receivables. Feel free to take the tips we provide here and implement them to get an understanding of how we work with firms.
HOW TO IMPROVE WIP
Here are 12 ideas for you:
- Hire a Client Services Coordinator to manage the workflow
- Do not start jobs until all raw materials in
- Implement a job monitoring system
- Budgets for all jobs and monitor with your team
- Set performance standards for turnaround times
- Tell clients the specific date when their work will be finished
- Finish it, invoice it (daily) - focus on closing jobs
- Bill in advance – 50%, 25%, 25% - or 100% upfront
- Interim bill over a predetermined limit
- Review your workflow management processes
- Improve incoming client data
- Improve efficiencies with better systems
HOW TO IMPROVE RECEIVABLES
How about these 11 ideas:
- Get tough – you are not a bank or a charity!
- Explain your terms of trade clearly up front
- Give invoice at final interview – tell your in advance how much it will be so no surprises
- Have multiple payment options - accept everything
- Eliminate columns on statements (30, 60, 90-day columns invites the client to choose which column suits them best!)
- Alter the wording on your invoices (due on or before DATE)
- Use a direct debit authority
- Ask for payment before you start the work
- Have a receivables system and a receivables champion
- Give a fixed price when you start the job
- Improve turnaround time.
There ideas are fleshed out in more detail in one of a multitude of eLearning courses you will find in PANALITIX’s LearningHUB. You’ll be able to get your entire team involved, working systematically through video-based learning material supported with workbooks and other supplementary materials to assist in the learning and implementation of the new ideas. These courses are drawn from the vast experience of coaching Accountants over the past two decades by our co-founders, Rob Nixon and Colin Dunn.
You too can take full advantage of LearningHUB, the best eLearning platform created by Accountants for Accountants. The first step is to take your firm’s business performance profile. This will determine areas for improvement and hidden opportunities in your firm so we can help you create an action plan and learning path to achieve your goals.
About the Author
Director & Co-founder at PANALITIX
Colin is a Chartered Accountant who, having spent almost 10 years with one of the fastest growing and most innovative firms in the UK, has since invested over 20 years helping business owners to improve their businesses with a focus on attracting new clients, better managing existing clients, developing new products, building an engaged team and strengthening internal business processes.
Colin's primary focus at PANALITIX is on product development and business improvement content. He is the author of the bestselling book “Accountants: The Natural Trusted Advisors".