The Financial Leader’s Monthly Action Plan: Navigate the maze of indirect rates
Get a little help navigating one of government contracting’s trickier subjects
The Financial Leader’s Monthly Action Plan: Modernize internal processes
Make sure the processes you use to achieve business success are up to date
We’ve released an eBook titled “The Financial Leader’s Monthly Action Plan.” Each month, we are posting excerpts here on our blog. For the month of September, the theme is “Modernize internal processes."
Working on complicated projects is definitely challenging, but you can create efficiencies by modernizing your internal processes. This involves understanding where inefficiencies lie, leveraging technology to streamline them, and measuring their impact on your business and client service. Here's how you can achieve this:
Enhance business operations with technology
Leveraging technology for business operations means automating the timekeeping process, reducing the time each employee spends on entering their work hours, and significantly cutting down the billing time for subcontractors.
Enhance business operations with technology by offering mobile timekeeping and integrating actual time spent with a resource planning tool. This integration yields valuable insights into both personnel and projects. The approach allows employees to complete timesheets swiftly from any location, ensuring efficiency. Additionally, it promotes compliance, enhances visibility, and improves utilization both upstream and downstream in the workflow.
Monitor metrics for continuous improvement
Don't wait until the end of a project to gauge its financial viability. Regularly review and track contract profitability, rates, wrap rates, and rate variances to identify potential issues early. Compare your rates to the competition and don't shy away from discontinuing unprofitable services.
Embrace modern ERP for seamless integration
Traditional siloed systems hinder efficiency. Connect disparate systems with a modern ERP through solutions like Unanet Connect—which acts as a central hub, seamlessly integrating your various applications and processes, creating a smooth flow of information across your organization.
Streamline project handoffs for faster execution
Ensure seamless project handoffs from Business Development to Project Management and Accounting. Integrate your CRM with your ERP or leverage built-in automations to provide key stakeholders with real-time access to essential information for project setup, planning, and financials. This transparency accelerates project execution and reduces bottlenecks.
Optimize billing cycles for improved cash flow
Automate bill review to eliminate manual, error-prone processes like offline bill reviews in spreadsheets. Modern ERPs offer online bill review for both Project Managers and Accountants, allowing for standardized, collaborative review and faster invoice generation. This translates to quicker revenue recognition and improved cash flow.
Use integration and automation for a competitive edge
Your ERP shouldn't limit your choice of best-in-class solutions. Look for an open integration platform that seamlessly connects your ERP with essential tools like payroll, HRIS, CRM, and marketing automation software, empowering your teams and optimizing workflows.
Manage flowdown clauses strategically
Develop a flowdown matrix that maps specific contract requirements based on subcontract value and type. This enables quick risk assessment for incoming contracts and facilitates informed decision-making. You can explore strategies for managing subcontractor compliance and obligations by visiting Unanet's subcontractor management page.
Additional best practices
Implement these additional practices into your operations to transform your business into a well-oiled machine of efficiency:
- Standardize processes: Create clear, documented procedures for common tasks to ensure consistency and efficiency.
- Empower employees: Encourage feedback and suggestions for process improvement from those directly involved in the work.
- Measure and track results: Continuously monitor the impact of your modernization efforts and make adjustments as needed.
Modernization is an ongoing journey. Adopt a continuous improvement mindset and leverage technology wisely so you can ensure your organization remains agile, adaptable, and ready for whatever the future has in store.
Suggested resources
For more tips on building a modern, efficient business, check out the following reading:
Want to learn more? Download the entire eBook here.