In today’s business challenges, the CFO's role is vital to a steady course in windy conditions. We find ourselves in uncertain times, with great volatility in the market, accelerating tech opportunities, and a fluctuating economy.
And with that, the role of the CFO has evolved. In this blog, we discuss how CFO’s need digital literacy and why billing and contract management are the first areas to look for in uncertain times.
Traditionally, cash flow is always top of mind for CFO’s. Currently, CFO’s find many aspects of business dynamics beyond our control, such as market fluctuations, inflation, and interest.
So, it’s logical to focus on what is in our control. Moreover, since new business models such as SaaS are based on long-term results and different unit economics, having a tight grip on the cashflows remains on the list.
According to Forbes, the CFO also needs to be a driver of digital and tech research. Two major areas appear. First, CFO’s should strive for real-time access to data and analytics to base business decisions on. As a holder of the truth, the CFO becomes the Data Storyteller.
But CFO’s should also be the tech researcher, constantly on the lookout to optimize processes, starting within their domain. With many new tools around, better systems can lead to better cash flow and thus better business.
To improve cash flow, the obvious way to improve receivables is to work on the collections process. However, there is much more to be gained in the billing cycle. Quick and accurate collection of billing data can be achieved by billing automation. This will remove many manual processes, which are error-prone and costly.
It is also good to take a look into the customer contracts as billing needs to be managed according to them. Billing is not a problem if the customer contract can be entered and managed in a "digital twin" form when the signatures are in place.
Contract lifecycle management is essential as contracts will change over time. The contract-to-cash process must capture that change to produce accurate invoices and avoid revenue leakage.
A lot is gained with clear and easy-to-process invoices that match your customer expectations. With less room for error, bills are sent out the first time right. Fewer disputes will speed up collections and lower collection costs.
Agile billing means being flexible to process billing data from various systems and being less dependent on your ERP system. At Good Sign, we see many of our clients adopt the thinking of a billing system as a mid-office solution to improve the billing system without having to do major overhauls in their back office.
If you feel your billing needs will outgrow your current recurring revenue billing solution, or if you are just curious to learn how Good Sign does things differently, feel free to take us to the test! We will gladly take on your challenge and prove to you it can be done, and that the new world of billing is closer than you think.
Feel free to contact us and let’s have a chat on how we can support your company.
Taija Engman : Feb 14, 2022 9:45:00 AM
We thought it would be the right time to address the topic of lovable invoices. In this blog, we explain that lovable invoices are not about...
Petri Takala : Jan 27, 2022 10:30:00 AM
Billing is typically a straightforward process that most companies have optimized in terms of efficiency. The efficiency is often measured by looking...
Petri Takala : May 4, 2022 9:00:00 AM
Billing takes the center stage in new business models. It becomes clear that the billing experience is essential to a long and profitable customer...
