Problem: Due to a numerous reasons, your company have a bad performance on forecasting cash flow and collecting revenues. Here are the main causes of poor cash flow forecast:
· Lack of priority definition among projects and task
· Absence of integration between project management and financial/accounting teams and software
· Timesheet and accruals are not corresponding to what is really going on
· From project milestones deliveries to invoicing there is usually a long period
· Your Accounts receivable grow in a faster speed then your cash collection
Solution: Here are 5 tips to improve your cash flow:
1. Improve integration and communication between project management area and finance/accounting teams by first defining and implementing straightforward processes and then implementing a tool that sends information back and forth between those teams.
2. Have clear understanding of your project backlog by defining terminology for projects and milestones status among your company.
3. Assure a standard project and tasks priority matrix to help improve your cash flow (what are the projects bringing better margins for the business).
4. Plan and follow up, at least weekly, company’s results and teamwork in a check meeting.
5. Set a goal for your team and put in place a visual dashboard so that everyone can follow their results.
How Can Crunchflow Help? Our solution platform integrates project management with financial/accounting teams. When a milestone is reached, everyone knows it is time to send the invoice. This usually cuts the milestone finish to invoice time by 50%.
With project portfolio management it is easy and quick to get a glance at the project backlog and segment it by status.
Inside each project, you can check deadline, financial milestones and allocate tasks to prioritize the work.
A powerful embedded analytics solutions makes it easy to share the results with your team and get everybody on-board making the cash flow better.
If you want to know more, get a demo.
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