3 Ways the Right Project Management System Can Increase Cash Flow

Project billing can be a complicated task, particularly when you have large, multi-phase projects. This becomes even more true when you run multiple disparate systems. You may not even realize the limitations your systems place on you. But the more tools and applications you run, the more disconnected your data is. Ultimately, this impacts your ability to bill clients accurately and efficiently.

With Eralis Project, based on SAP Business One, your data is integrated into a single system. This has a wide range of benefits throughout the project lifecycle, but users often see the biggest impact when it comes to billing. Here are the top three ways the system helps you to streamline invoicing and improve profitability as a result.

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1. Recapture Billable Time

In a previous post on project costing, we briefly touched on a challenge all professional services firms experience – leakage. These are the missed billing opportunities that result from inaccurate time and expense tracking against a project. Most often, firms try to address this by revising their employee training procedures or building extra checks into their billing processes. While these measures will certainly help, you’ll only see a marginal improvement if you’re still running disjointed systems.

Picture the flow of information when you have separate systems for time entry, expense sheets, work-in-progress (WIP) processing, accounting and payroll. How many times does the data need to be manually re-entered or exported from one system, then imported into another? Each point of entry introduces an opportunity for error.

An integrated project management system, like Eralis Project, based on SAP Business One, gives you a single point of entry for your project costs, like labor and expenses. And every entry is tagged directly to a project activity, so you know exactly where that cost should be allocated. This reduces the chances of costs being missed in billing, as the data flows straight from time and expense sheets, through to work-in-progress. From here, Project Managers can easily identify the costs to be billed to the client in the current period and provide invoicing instructions to your Accounting team.

2. Reduce Time to Invoice

That leads us straight into our second point. In many firms, work-in-progress processing is highly manual, often relying on paper forms to provide instructions to Accounting. In other firms, the Accounting team becomes largely responsible for determining what to bill or not bill to a client. This is typically a function of the systems in place. They place limitations on your Project Managers, even though they are the ones most involved with the projects.

Eralis Project, based on SAP Business One, offers an intuitive WIP module that gives Project Managers complete control over the billing of their projects. And it allows them to process transactions for billing in a fraction of the time it used to take with your old systems. You can easily identify which costs to bill, not bill, or put on hold, on an individual transaction basis. Or you can use the bulk processing feature to speed up the process even more. The system also allows you to adjust the project activity allocation and specify markups or discounts. When you give your Project Managers the tools they need for project billing, you end up with more accurate and timely invoices.

3. Speed up Collection Time

As soon as your Accounting team receives billing instructions, they should be able to generate the invoices and get them sent out to clients in a timely fashion. When you run a basic accounting program, you’re forced to create individual invoices for each project or project activity. Even if you have multiple items to bill a single client for, you have to do them one by one. This takes your accounting team more time to process – when they send out invoices and when they process the payments.

Standard functionality within SAP Business One allows you to consolidate multiple invoices, saving you time throughout the billing cycle. At the click of a button, you can create a single invoice with a detailed breakdown of multiple line items. So, your client gets the detail they need, without all the extra paperwork. Fast forward to payment collection – you get a single payment that can be applied to the applicable line items. It’s a win-win for you and your client.

These are just a few of the benefits you’ll see when you run an integrated project management system. Get in touch with us to learn more about the power of Eralis Project for your firm.

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2017-12-12T14:41:56-06:00 Project Management|1 Comment

One Comment

  1. Om Vora October 24, 2019 at 5:25 am - Reply

    True said. The right project management system can increase the cash flow and work accordingly it. It really helps to build a system properly and make better for the future.

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