The process of manual invoice collection was becoming too much for just one person. Every week, hours were spent preparing reports on the status of previous invoices. Oftentimes, when things got too hectic, there would be no report. This meant cash was going uncollected and leaving Vernovis with a depleted bank account. Cash is king for small businesses. A heavy delay in collecting cash could have put their payroll in jeopardy.
While there was the ability to expand the finance team, Krista Lewis, Director of Finance and Accounting, didn’t see a reason to add more people to the payroll when there was another solution out there.
The Solution: Find a tool that would assist with keeping clients on track with payments and reduce time spent manually chasing down cash.
While Krista was able to keep up with invoicing, it was clear something needed to be done about the difficult process of tracking sent invoices and making sure that clients paid on time or at all. It was important that the platform be user-friendly and genuinely make the workflow easier for the one-woman finance team at Vernovis. After comparing to other tools out there, Krista realized that the look and feel, the library of templates, and the depth of automation were not found in the other solutions. At first, the price seemed steep for a small company like Vernovis, but after closer review, the benefits outweighed the cost by far.
Entire Integration Effort: 1 Hour!
In less than an hour, Gaviti was synced with Vernovis’ Quickbooks Online account and ready to go. The process of getting Gaviti setup was "seamless" and "painless". Learning how to use the platform was just as easy. From day one with Gaviti, the collections process at Vernovis had made a complete 180-degree change.
“I found the system to be very intuitive. Still, the Client Success Manager walked me through setting up the templates, how to use the system, and how to send mini statements. It was like the flip of a switch.”--Krista Lewis, Director of Finance and Accounting, Vernovis
Results with Gaviti: 25% decrease in DSO in 6 months, increased cash flow by 83% (6% to 1%)
In less than 6 months, Vernovis’ Days Sales Outstanding decreased by 25%. With the perfectly worded templates for automatic invoice reminders, customers actually began answering collections emails and paying earlier, even on time! Vernovis’ DSO went from 40 days to 30 days and their cash flow increased exponentially. Customers with invoices that were 60+ days overdue were holding 6% of their revenue. After implementing Gaviti, this number has decreased to only 1% of their revenue. That’s an 83% reduction!
“I no longer have to spend hours per week crunching the numbers to see where my cash is. Reports are there, waiting for me in Gaviti. For the most part, I don't even think about collections. It just happens."--Krista Lewis, Director of Finance and Accounting, Vernovis