Reconfiguration of Invoices and Payment Methods Essay

This intention lays discover the benefits and impact of applying technology in order to reconfigure invoicing and payment method acceptance at mirthfuls grace. The company suffers from low ingathering rates and long collection sequences. Its traditional method of get and invoicing is both ineffective and costly. Additional staff is postulate just to attempt to collect past c on the unharmedable bills which are often cartridge holders err unmatchableous and outdated. Moreover, the company would further benefit from a guest database that would compile all work orders and thin out or eliminate redundancy. The lack of technology use has put the company at a disadvantage in the industry.Problem The issues to be addressed are to lessen collection time of payments while at the same time reduce overhead costs, create a client database that can be accessed by dint of marketing, finance, and customer serv fruitcake departments, and greatly improve upon operational processes.Appro ach Establish if implementing a handheld source poster acceptance method at the point-of-sale get out efficaciously reduce payment collection time and give the company a competitive advantage. kick upstairs finalize if electronic invoicing and database creation will eliminate redundancy and reduce costs.Methodology Meet with appropriate department headsfinance, customer service, operations, marketingto determine how each will benefit by the reconfiguration and how to maximize profits from those benefits. Decide which database program would be well-nigh compatible for meeting the needs of the organization. Additionally, establish the costs and time associated with educating and training staff on the products and software system being introduced. Allocate the time and expense and determine the best quarter to implement the changes. Company expenses, payable to lack of payment collection and overhead, severely cut into profits. Immediate payment by way of a mobile credit card processing adapter at time of service will jockstrap increase company profit major power and efficiency. Each program will tie into the next. The credit card mainframe will automatically generate electronic invoices to be emailed to the customer. These invoices will be housed in a database that will collect and store relevant customer information. The impact on the company as a whole will be positive as departments will have the business leader to share information and cooperate for optimal efficiency.Milestone 1 Problem The issues to be addressed are to lessen collection time of payments while simultaneously reduce overhead costs, create a customer database that can be accessed done marketing, finance, and customer service departments, and greatly improve upon operational processes.Company Background dexterouss Landscaping was formed in 1976 by one man in Pennsylvania and started operations with only devil additional employees. smilings provides construction of ponds & rock walls, irrigation, lawn maintenance, flowerbed design, and all landscaping needs to its customers. It has adult to employ as many as seventy-five people and has net revenues of al nigh one cardinal dollars per year. Sunnys (The Company) services both residential and commercial properties with commercial generating nearly 75% of its annual revenues. In the early 1990s the Company began providing additional services, such as snow removal and ice buildup prevention that would allow it to stay operational year-round. With these additional services came an increase in untried accounts most of which have been residential. The profit increase with respect to the new accounts has been mediocre at best. The Companys softness to collect payment on the new residential accounts has begun to severely decrease profits and it has been proposed to reduce services. In an effort to continue all service and grow, the Company has begun to seek solutions.Approach Internal financial look has shown that decreased profits are due to a multitude of issues including the high number of delinquent or late accounts, excessive staffing expenses, and a general lack of sufficient and effective use of technology. Determine if introducing a new method of point-of-sale payment collection will reduce expenses related to residential accounts. Further determine if an electronic invoicing process will enable the Company reduce staffing costs while simultaneously creating a customer database.Methodology Convene with all the appropriate departmentsfinance, customer service, operations, & marketingto determine how a database should be constructed so it is cross functional for each department. The company currently uses Microsoft Access for its customer list. information pulled from this list is oftentimes outdated and erroneous. It is inappropriate software to use in order to transfer customer information to an invoice. This process increases work hours and is redundant. As work orders are issu ed and workers are dispatched, each should be provided with the ability to adjust the invoice electronically onsite for immediate customer payment. The method used now is to issue the order, manage the work, adjust the invoice if necessary, and then mail it out in the traditional fashion. The increase in new residential customers has also caused an increase in non-payment. The use of a mobile credit card central processor could help reduce this payment delinquency.Options/Solutions Sunnys Landscaping has very niggling collaboration amongst its departments and a couple of(prenominal) tools to work with. Each department is independently operated from the others and has not yet adapted to the influx of residential accounts. Whereas, the large commercial accounts are well known and recognized, the smaller residential accounts are given very little customer service. The Company must find a solution that will reconcile both the residential and commercial accounts with companys overa ll needs and each departments ability to operate. sensation centralized system would allow the Company to function as a whole.The Company has a need for a system that can accomplish collar goals 1. Generate invoices 2. Allow for point-of-sale credit card processing 3. Create a database that is cross functional All three systems must work in tandem and allow information to flow from one process to the next. For example, as work is completed a foreman requires the ability to generate an invoice on the spot. Then they must also have the ability to accept payment from the customer. Lastly, the customers information and work performed must be electronically transferred into the database where other departments will be able to access it for a follow-up service. Marketing could use the information for promotional mailers, customer service could use it to obtain feedback, finance would use it for records, and operations could use it to find out the type of service performed. If one system can be constructed that will weather all three functions, it will reduce costs company wide, allow for customer information to be used effectively throughout all departments, and increase profits while reducing delinquent accounts.Milestone 2 Sunnys Landscaping will need to research further to determine if and what additional resources will be required to reconfigure its invoicing and payment methods. It must also determine how much training will be required for frontline workers and supporting staff. Sunnys Landscaping should consider the following questions prior to making a end about which software and hardware to use1. What point-of-sale device will allow for data to be stored in a database and extracted for invoicing? a. Is there one device that is superior over the other in cost and performance? b. Will this device need any additional in-house hardware to function? c. Will customers financial and personal information be stored and processed securely how can we ensure custo mers that it is? 2. How long, if at all, will funds be held for before deposit? 3. Will one database be able to support all the functions that each department requires? 4. Can prior customers information be considerably entered into the new database? 5. Will a lack of mobile or internet connection affect point-of-sale processing and if so, how are payments accepted otherwise?Point-of Sale Device The two most compatible devices with Sunnys Landscaping needs are SquareUp and Intuit GoPayment. Each device works similar to one another. Research has shown the greatest differences are in payment deposit time and customer service. SquareUp appears to have a longer slower deposit time of funds, especially with new accounts. Moreover, the first few months of service do not allow new customers to withdraw entire deposit amounts. According to the SquareUp website, this payment hold is to reduce fraud. GoPayment by Intuit seems to have the greatest customer satisfaction. GoPayments device hard ware also seems to be of a better, more secure design as can be seen in the figure below.