Plugging loopholes in the invoicing system can save substantial revenue losses in IT staffing companies. It should be apparent to staffing company accountants that: missed timesheet entries, under-mentioned hourly rates, failure to report work, and eligible incentives can cause financial losses and cash flow problems. Improving the timesheet capturing process can plug revenue losses and streamline cash flow leading to higher profits for the organization.
Streamlining the Timesheet Capturing Process
Timesheets have a pivotal role to play in cash flow management and must be fine-tuned. The best way to achieve this is by automating the system and making the best use of technology. There is no specific format for timesheets and no particular set-time for submitting it to the accounts department. The time for submission is decided by the invoicing team and consultants will be expected to report as per guidelines. However, delinquency is quite common when timesheets are submitted manually by mail or even by email in PDF format.
Automation can help to bring down consultant-delinquency in the timesheet submission process by incentivizing the use of technology and smart gadgets such as Android, iPhone or tablet to streamline operation. The use of technology in timesheet submission makes it possible for consultants to work remotely – they will no longer have to be at the office or choose a particular time for submission. This means that the consultant can use his leisure time to work on a timesheet part by part in the comfort of his home and then consolidate it for submission.
The Importance of Streamlining Cash Flow
Running a business without money is impossible and unless you have enough of it in your banking account, you cannot pay your consultants (and subcontractors), meet tax obligations on time and pay for operational costs such as office rentals, stationary, travel and utilities.
In IT staffing operations the principal source of income is the money that you will receive from your customers and the way to receive a payment is by sending an invoice. You get paid only if your invoice is zero-defect, compliant and submission was on time. Only an automated timesheet-to-payment can make this possible. Therefore the use of software in timesheet capture is critical in cash flow management.
Software Options for Timesheet Capture
QuickBooks is the most commonly used accounting application in most IT staffing companies, but does not have 100% staffing-specific features – it tries to meet a wide range of user base and hence needs an add-on. CONSULT provides this essential component. It is a total invoicing solution with timesheet capturing up to managing A/R features using relevant technologies. It works on a real-time basis and does not require manual updating from time to time.
CONSULT is a cloud-based application so you don’t have to bother with making any installation or frequently upgrading. It can be integrated with QuickBooks accounting software you are already using and enable it with IT staffing specific features. Integrating takes just a few minutes. It is a cost-effective tool that you get for as little as $1/Inv.