Thought Piece

The usual invoice generation method utilises a series of spreadsheets that wrestle with a host of factors — various products, contract terms, commodity prices, currency fluctuations and tax points generate spiralling complexity and opportunity for error. A good solution is to move away from spreadsheets, that need to be constantly reinvented, to a database driven system which can more efficiently deal with a complicated matrix of perpetually variable factors.

A team can work alongside the client to construct a robust and sustainable system that can produce the correct invoice on time, every time, despite a multiplicity of variables.

The resulting pricing sheets can be sent out to individual customers, in a timely fashion, as PDFs. These can provide advanced notice, in simple summary form, of how prices are built up. There's no reason they can't be easily understandable, making it possible for customers with limited access to technology and making it more straight forwards for everyone else.
Invoices can then be generated automatically, direct from the delivery logistics system, reducing errors and cutting internal processing costs. Not only that, invoices can be sent via Electronic Data Interchange (EDI) — further reducing errors and cutting customers' processing costs.

The final result, connected seamlessly with the main accounting system, can be fast and accurate, no matter how complex the environment.

Banks are not charities. But they do calculate the lifetime value of the customer and they understand the reputational risk to themselves of the slash and burn exercises they are sometimes accused of.

That brings us to the role of the banks, so often the largest creditor and certainly the one with the most intimate knowledge of how a company is faring. We all love a stereotype and the heartless, faceless bank pulling the plug on sound businesses over a minor blip sits deep in the business consciousness. But not all banks fit this caricature. "We want to work with management of a business facing difficulties to help identify the issues and provide solutions to get them back on track," says a senior manager with a leading retail bank. "We can make the most impact when the problems are identified early. We are keen for management to be open with us."

Banks are not charities. But they do calculate the lifetime value of the customer and they understand the reputational risk to themselves of the slash and burn exercises they are sometimes accused of. Most solutions to business difficulties involve access to more funds and/or different products (hedging, leasing, factoring) and that all adds up to continued and profitable involvement for the bank.

A Repositioning Turnaround may mean divestment of a troublesome subsidiary. It may mean embarking on (yet another) cost-cutting exercise, including turning away revenue opportunities if they are not of a sufficiently high margin. It most certainly involves a first step of getting an impartial and pragmatic overview of what the problem actually is, from Turnaround Professionals who also know the kind of language with which to talk to banks. The moment you take this kind of decisive action, you're likely to discover that there's no crisis, no drama, only urgent action that must start now.

Peter Charles 2010