Why its important to implement
Ensures steady cashflow by avoiding payment cycle delays. Prevents payment rejection due to staff changes or policy reviews at insurance companies.
Cashflow Management
Invoicing is to be done as the highest of priorities and never put aside or delayed, if the business submits all invoices within 7 days of job completion it will ensure a steady cashflow as the work provider may have 30/60/90 day terms for payment after invoice is received delaying important cashflow even more. Some businesses have been known to have piles of backlogged invoicing to do it is important to check the situation in each shop.
Payment Risk
Delays could cause payment to be rejected by the work provider if the person who originally approved the repair could have moved on and the company may review all claims.
Business Impact
Profit: Directly impacted by cashflow delays and rejection risks. Throughput: No direct impact. Cycle Time: Administrative component. Idle Time: No direct impact. Customer Satisfaction: Minimal direct impact.
Profit
Delays in invoicing is causes delays in cashflow and possible rejection of invoices if there is any change of policy or staff.
action steps
Establish submission policy and process, assess staffing needs and provide additional support if required, implement strong internal enforcement warnings.
Invoice Submission Enforcement
Strong internal warnings if policy not followed once established
Invoice Submission Process
A policy and process should be established to ensure that the person responsible for invoicing is getting all invoices completed within this time frame, if they are not then look at job roles and find additional person to assist.
Related tasks
Milestone:
05: Implement Performance Metrics Tracking System