Before integrating the bill.com accounts receivable (AR) module for invoicing and collections, the Incentive Research Foundation (IRF), an organization dedicated to advancing the effective use of incentive programs through research and education, faced challenges in managing its sponsorship revenue for its annual meeting. The event, which typically generates more than $900,000 in revenue, was hampered by inefficiencies in collections, leading to financial losses and excessive reconciliation efforts.
The transition to the AR module was driven by a pressing need to improve collection times, enhance cash flow, and reduce the administrative load associated with manual reconciliation processes. This change was not just a shift in tools but a strategic move to optimize financial operations and ensure the sustainability of IRF's key revenue-generating activities. Using AR automation software streamlines the labor-intensive, manual tasks that are typically involved in AR management, creating more efficiency.
Solution Implementation
IRF's adoption of the AR module involved several key steps designed to address the core challenges:
- System integration: The integration of the module with IRF's existing financial systems enabled automated invoicing and collections, significantly reducing manual intervention and the potential for errors.
- Improved communication: Enhanced communication features within the system allowed for better coordination with sponsors, ensuring clarity in payment expectations.
- Streamlined reconciliation: The new system facilitated easier reconciliation of accounts, saving time and resources for the finance team and staff involved in event management.
Results
The implementation of the AR module marked a turnaround in IRF's financial operations with notable achievements:
- Accelerated collections: IRF saw most of its collections complete, a vast improvement from previous years where there was a lag.
- Strengthened cash flow: The improved collections process directly contributed to a more robust cash flow, crucial for the organization's operational stability and future planning.
- Reduced financial losses: The efficiency and accuracy of the new system minimized the need to write off balances, safeguarding IRF's financial interests.
- Increased strategic focus: The director of sales was able to allocate more time to selling and strategic planning, while reducing the time spent retrieving payments.
Revenue and Efficiency Gains
Due to IRF’s partnership with MCI USA, the strategic overhaul of the organization’s AR process not only addressed the immediate financial challenges but also set a new standard for managing sponsorship revenues efficiently. The direct benefits were clear: improved cash flow, enhanced operational efficiency and reduced financial risk. These improvements underscore the value of adopting technological solutions to financial challenges in the nonprofit sector.
