Managing accounts receivable processes in SaaS Company X.
Kiiskinen, Maria (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024112630449
https://urn.fi/URN:NBN:fi:amk-2024112630449
Tiivistelmä
This product-type thesis was conducted for SaaS Company X by the author who has been employed for over a year in Company X in the Financial department. The project aims to enhance the accounts receivable (AR) processes in Company X by investigating the existing challenges and identifying solutions to improve overall efficiency.
The theoretical foundation of the thesis is based on key concepts of accounts receivable fiscal management, invoice-to-cash processes, invoice reconciliation, revenue recognition, and IFRS 15 revenue from contracts with customers. These concepts serve as the framework for understanding and evaluating the existing AR processes in Company X. The practical component involved mapping current accounts receivable processes, determining the current challenges, and conducting empirical research through interviews with key stakeholders to gain deeper insights from their views.
Qualitative research was conducted through four semi-structural interviews with those employees who have impact on accounts receivable processes. These interviews provided critical data for pattern analysis, revealing gaps and inefficiencies in the current workflow. The lack of clear structure and limited visibility into AR processes were identified as primary issues. Based on the pattern analysis the author created two Standard Operating Procedures (SOP) for two departments: the Financial and the Commercial departments. These SOPs were made to establish a clear framework for managing AR tasks and enhancing transparency. The implementation of these SOPs is expected to streamline the workflow and enhance overall efficiency in managing AR processes.
In conclusion, the project not only highlighted the need for structured AR processes but also provided steps to address the challenges. The introduction of both SOPs serves as a foundation for future improvements, positioning Company X to manage AR processes better and support its objectives.
The theoretical foundation of the thesis is based on key concepts of accounts receivable fiscal management, invoice-to-cash processes, invoice reconciliation, revenue recognition, and IFRS 15 revenue from contracts with customers. These concepts serve as the framework for understanding and evaluating the existing AR processes in Company X. The practical component involved mapping current accounts receivable processes, determining the current challenges, and conducting empirical research through interviews with key stakeholders to gain deeper insights from their views.
Qualitative research was conducted through four semi-structural interviews with those employees who have impact on accounts receivable processes. These interviews provided critical data for pattern analysis, revealing gaps and inefficiencies in the current workflow. The lack of clear structure and limited visibility into AR processes were identified as primary issues. Based on the pattern analysis the author created two Standard Operating Procedures (SOP) for two departments: the Financial and the Commercial departments. These SOPs were made to establish a clear framework for managing AR tasks and enhancing transparency. The implementation of these SOPs is expected to streamline the workflow and enhance overall efficiency in managing AR processes.
In conclusion, the project not only highlighted the need for structured AR processes but also provided steps to address the challenges. The introduction of both SOPs serves as a foundation for future improvements, positioning Company X to manage AR processes better and support its objectives.