Cash-Flow: Are you on the Back Foot, Gate Keeping or Rainmaking?
Plot your position on our ‘Cash Flow Foresight’ scale …
You know when someone in the office comes out with an expression that sums up something in a few words that makes you go “Ah ha!” They tend to stick in your mind right? At the very least it helps you develop a view that moves you forward. This is my humble aim with the following scale to measure the level of Intuitive Foresight in your invoice life cycle process. OK, it’s not an exact science, but could well help target improvements in the right place. Consider your position in the scale based on how things are most of the time …
Position 1: Back foot
- You always feel in ‘catch up’ mode
- You don’t get invoices out on time, every time
- Your invoices are frequently disputed or queried
- You find yourself accepting reductions for no reason other than to get paid ontime
- You accept, then fail to follow up promises to pay
Position 2: Gatekeeper
- You get invoices out on the dot, every time
- Your invoices are always accurate and clear
- You remain on top of the invoice life-cycle until acceptable settlement is reached
- You are able to negotiate and administer promises and payment schedules with administrative aplomb
- You are able to react to any customer driven event, then organise and systemise your response
Position 3: Rainmaker
- You can perform “Gatekeeper” as a background hum
- You know your customers payment cycles and their invoice approval process
- You know the personalities involved in accepting, approving and paying your invoices
- You know how invoice exceptions are handled by your customers
- You know the pinch points in your customers monthly cycles that make your communications well timed and helpful in nature
- You pick up insights from the above knowledge to increase your value to your customers