Company: $5.6M residential and commercial lawn service provider
Value Problem: Poor Cash Flow Procedures.
What Wasn’t Working
- Paper work orders were received in the office 2-3 days after the service was performed (sent to office out of state).
- Billing clerks typed in work orders and then ran invoices for the customer. Sent invoices via US Mail to customers.
- Customers sent checks to a PO BOX, which was picked up everyday and then sent to the office (out of state) to be posted to their account.
- Checks were deposited into the company account. A/R average days were 57 days.
- Instituted tablet work orders so once work was completed and signed off by technicians, the customer was immediately invoiced electronically.
- Accepted credit card payments electronically which posted to the customers account and was deposited into the company account.
- No more wasted time doing work order input or pulling of invoices or mailing of invoices.
- No more manual posting of invoices and payment to customer accounts (all done electronically).
- Deposit completed electronically.
- A/R average days were 57 and with these new procedures reduced to 28.
- Customers were immediately electronically notified when work was done at their home creating an invoice and improved customer service.
- Eliminated the need for billing clerks who became inside sales representatives increasing the number of new accounts.
Value Driver: By increasing cash flow and reducing expense the value of the company was increased, and the company was positioned to scale.