Saving Headcount and Reducing DSO by More than 1 Week at a Fast-Growing Staffing Company
CCS Construction Staffing has dramatically improved its invoice-to-cash process. By implementing a solution that automates the time-consuming accounts receivables tasks and ensures consistent and easy invoice delivery, CCS has been able to reduce headcount within its AR function by 66%.
By supporting electronic payment methods and allowing clients to pay the way they want to, CCS has seen an increase in the amount of clients paying their invoices on the day they receive them. Days Sales Outstanding (DSO) has decreased by over a week – from 48 days to 37.
THE STARTING POINT
CCS Construction Staffing had an invoice delivery problem. Each week, hundreds of invoices and hundreds of time cards needed to be printed and manually matched up. Once matched, those files were scanned, uploaded and sent out – 60% via email and the remaining printed and mailed. This process started every Wednesday at noon and took the balance of the week to complete. Two and half days to deliver invoices, every week.
In addition to the incredible time requirement, it wasn’t uncommon for invoices to go missing. As much as 60 invoices were skipped each day. A log needed to be created to track any invoices that were skipped or short-payed and then that log had to be reviewed by the President. Once reviewed, invoices were reprinted along with the corresponding time cards and mailed out again.
Staffing is a cash intensive business. CCS are paying people every week so when invoices are skipped and payment is delayed by 60 or 90 days, it hurts the business. CCS had to find a better way.
CCS Construction Staffing implemented VersaPay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. With ARC, CCS is able to provide a better, and more professional client experience as well as enable greater efficiencies for its staff.
“We had a good roadmap of what we wanted to accomplish with this project when we started. One was to streamline the billing process and make it more efficient. The second part was to deliver a better client experience. We’ve achieved both of those goals.”
Matt Telmanik, President
ARC enables fast and reliable invoice presentment. What use to take 2.5 days each week is now done in a single afternoon. In addition to time savings, CCS is also saving on postage, paper and envelops as invoices are now delivered via ARC’s easy-to-use, self-service client portal. On the odd occasion that an invoice is skipped, the AR manager can now resend it instantly – no log, no re-printing, no manually matching up time cards. Within the first 3 months of implementing ARC, 75% of invoices were being delivered and viewed through the platform, and that number keeps growing.
“Our sales team use VersaPay as a competitive differentiator when talking to new clients as nobody else in the space, to our knowledge, can offer the same client experience.”
Matt Telmanik, President
With ARC’s ability to support online, customer-preferred payment methods, more clients are paying on time with less checks which makes both CCS and its customers happy. In an industry as competitive as staffing, any advantage helps and by being able to offer its clients a better invoicing and payment experience, CCS have gained a distinct competitive advantage.
Industry: Staffing and Recruitment
Invoices per month: 2,000
CCS Construction Staffing is a premier construction temp agency providing reliable, qualified manpower to the construction trades since 2008.
Skipped invoices were hurting the company’s cash flow. CCS needed to find a way to solve that problem.
Initially reached out to their ATS system for a solution. When they couldn’t help, they found VersaPay.
Chose VersaPay for it’s easy and reliable invoice presentment capabilities.
Picked the most tech-savvy group of clients to roll out to first. Quickly rolled out to all remaining clients thereafter.
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