Golden Section Technology is offering a $1M COVID-19 Relief Plan for those addressing COVID-19 challenges. This initial plan will extend through June 30, 2020. GST will commit up to $1M in development grants through R&D Software services. This $1M in grants will be realized by your company through discounted and extended payment terms for quickly on-ramped services to bolster your development capacity.
Our goal is to help your company maintain business continuity by supporting existing development needs. We have unique experience in healthcare, clinical documentation, telemedicine, big data, and a variety of other areas that are well suited to confront the COVID-19 outbreak.
We recognize that the health toll as well as the market impact is an ongoing severe situation. COVID-19 is a clear and present danger to many of our families and business efforts. As this pandemic has been running through China, Spain, and now the US, we have made note of the resilience of each of our offices in these countries and have also observed that one of the keys to our business continuity is our distributed and remote teams. This puts us in a unique position to be able to offer assistance to any of you who are faced with difficult decisions with maintaining your current technology due to reduced ability to support ongoing development efforts. We want your company to succeed. Our goal is to give you access to the right tools and teams to maintain control of your daily operations without delay from the COVID-19.
Should this current market environment require you to reduce you R&D line item expense, you can qualify for our COVID-19 Plan. Our support can provide FTE development teams ranging from 1 person to teams of 10+ people. Our team will contribute to your services quickly, comprehensively, and with the highest level of quality. Payment with discounted rates start from the $20s/hr at terms of 60+ days. Pricing may vary depending services needed.
Accounts Receivable Management
Cash is your lifeblood, and the cash available is driven by the health of your A/R. Your A/R account will naturally grow as your company grows. However, it is important to keep a close eye on your A/R account and manage it proactively to avoid having to scramble when there is a cash crunch
Proactively managing your collections with an A/R strategy will ensure that your actual cash position mirrors your budgeted position, preventing surprise cash crunches and stress.
Establish an A/R strategy to effectively manage your
GST Guide Their Clients With This Proven Methodology:
Create an A/R Process
Review any processes you currently have in place around invoicing and collections. What is working? Where is their weakness?
Consider the best practice process below.
Brainstorm and establish the A/R management process that would work best given your company’s structure, product, and constraints. Be sure to include specifics (time frame, people, deliverables) to make this process as actionable as possible.
A/R Best Practices
One specific person must be assigned with collections - it is too important of a job to not specifically allocate resources and accountability. When left to individual account managers, collections are often put off too easily.
The person responsible for the collections should be detail-oriented, reliable, and have strong interpersonal skills. At the end of the day, this person will be establishing relationships with clients and asking them for money; getting the money is often easier for people who can build strong connections.
A Note by Dougal Cameron, Founder at Golden Section:
While refining this process for a company I founded, I initially paid our Collections point person an hourly wage to manage this process. After several iterations, I found her to be much more motivated, and therefore more successful in quickly turning over our A/R account, when she received a commission on each paid invoice.
Include an invoice on signing term in the contract. The sooner the process gets started, the sooner you will collect. Moreover, your customer is still excited about your product and so is likely to pay more quickly.
Invoice! This seems obvious, but this step can easily get missed in the transition from contract to onboarding. Also, a specific due date should be listed on the invoice; “due in 30 days” is vague enough (30 days from when?) to be easily ignored.
Five days prior to due date reach out to invoice department at the customer’s company to give a friendly reminder and check in on the status of the payment.
On the day the payment is due reach out again if the payment hasn’t been received.
Transition. As soon as a contract is signed, the Sales Rep alerts the Collections point person and sends the contract.
Track. What accounts are approaching a due date?
A Note on Renewals
The above process will be the same for renewals except for the transition stage. Either a Sales Rep or the Collections point person needs to track when an account is approaching a renewal date. A process then needs to be put in place to decide who will contact the customer prior to a renewal contract being sent to check whether there is an opportunity for account expansion.
Daily cash report. We recommend the Collections point person email a daily cash report to the management team. This report should include the day’s cash balance, an itemized accounting of current A/R and A/P, and sources/amounts of any cash credits or debits. We believe a daily cash report keeps your company’s cash balance at the forefront of your minds, encourages transparency and accountability, and prevents any surprises.
Monthly A/R KPIs. Choose KPIs to judge your A/R management process. We recommend tracking Days Sales Outstanding (DSO) and a historical comparison of billings versus collections (# and $) in a month.
GST can provide a template to help ensure you thoroughly record your A/R Management Process including expectations for Deliverables and tracking KPIs. Make sure to fully communicate the process and expectations to the appropriate people!