Case Study: Adapting to Invoice Requirements
Chiara Starr, owner of staffing company Starr Solutions, was excited when she was awarded contracts to provide services to large corporations. These contracts would provide steady work and paid better-than-average rates.
Starr’s new large clients used vendor management systems to manage their accounts payable. However, Starr's team had not integrated the clients' requirements into their own billing process.
- Starr's team did not consistently submit invoices through the vendor management system.
- Starr's team did not always complete the required fields.
- Clients team did not monitor the system on a regular basis to determine invoice status.
The result was that several invoices were rejected, and the rejection went unnoticed for an extended period of time.
After several months of nonpayment, Starr reviewed her company’s process and uncovered the issues. She then connected with her clients to properly understand the vendor management system requirements and implemented stronger collection procedures. Once the proper processes were communicated to the team and implemented, the cash flow from these clients was more predictable.
Fully understand client invoice requirements up front. Pay attention to the collection procedures in place and monitor all clients that are not meeting the agreed-upon terms.
Businesses described in the case study are illustrative and do not represent real individuals or situations.
For Informational/Educational Purposes Only: The author’s views may differ from other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone, and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions, and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.