Billing on Time: Why PO and BC Integration is Essential
For organizations, cashflow issues can be mitigated if billing happens on time. Having Project Operations and Business Central gets you covered from a Sales/Project standpoint and BC handles the accounting side, which is great. But when these systems are not connected end to end, it creates problems.
Let’s look at some of the issues and the need to have PO-BC integrated so that business transactions need not be left to manual dependency.
Disconnected Systems
Organizations like Professional Services or Project-based organizations in the SMB/SMC sector use Project Operations to handle Sales and Project Management and use Business Central as their backend Accounting.
Out-of-the-box, Project Operations and Business Central are not integrated from a transaction perspective. This leaves a gap for the organization to be filled manually and dependent on accounting/project management to ensure everything is accounted for in Business Central.
This adds human dependency to keep both the systems in sync and make sure everything gets billed on time.
But this is only the scenario, let’s talk about some problems with this scenario in the below section.
Why PO and BC Integration Matters
When we don’t have the systems connected all the way from Sales to Billing, the following issues start to add up resulting bigger cashflow issues –
- Manual dependency on financial transactions entered from PO to BC makes them prone to error.
- Absence of team members or forgetfulness makes the organization miss billing due dates and Invoices are delayed in being sent out.
- For growing organization, more Invoices to be sent out means more manual work which consumes valuable resource time which they could utilize to focus on growth-oriented activities.
- Steep learning curve for both Project Operations and Business Central pose significant challenges to team members working on it and result in slowdown with change of hands.
These things add up causing loss in revenue and hence, causing cashflow issues. Profit and Loss statement might look great, but cash-in-hand makes organizations suffer and causes hindrance in growth.
Hence, the systems should be reliably integrated to eradicate the issues discussed above.
To give perspective of what all needs to be integrated to ensure that all transaction data between Project Operations and Business Central is taken care of, refer to the below architecture which we’ve incorporated in our PO-BC Integration Module –
To conclude that, when Organizations have their business systems connected to accounting and the financial transactions are taken care of, cashflow issues are eradicated so that organizations can bill on time and get paid on time.
Without this, cashflow chaos is difficult to overcome and fixing billing issues is of prime importance.
We hope you found this blog useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfonts.com.
