Case Study 2
Accelerating Cash Flow for an
Innovative Design Firm
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Client Profile: A Leading Texas Design Studio​
Industry: Architecture & Interior Design
Location: Greater Houston Area, Texas
Annual Revenue: Over $800,000
The Challenge:
​This creative architectural and interior design firm was thriving with new projects but faced persistent cash flow issues. They were losing revenue due to unbilled hours, and their manual invoicing process was slow, prone to errors, and delayed payments from clients, impacting their ability to take on new projects and pay staff on time.
The Challenge
Despite a healthy project pipeline, this design studio found themselves frequently waiting for payments. Their team's time tracking was inconsistent, leading to overlooked billable hours. The multi-step invoicing process, reliant on spreadsheets and manual follow-ups, meant invoices were often delayed by weeks, creating a gap between work completed and cash received.
Our Solution
Streamlined Time Tracking & Billing Automation
Providence Bookkeeping & Tax Services partnered with this Texas design studio to overhaul their revenue cycle, focusing on their key financial pillars:
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Empowering Their People: We trained their designers and project managers on the critical importance of daily, accurate time tracking using a user-friendly system. This helped foster a culture where every billable minute was recognized and accounted for.
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Optimizing Their Process: We redesigned their invoicing workflow, moving from a manual system to an automated, milestone-based approach. We implemented clear protocols for invoice generation, client communication, and systematic follow-ups for overdue payments.
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Enhancing Their Program: We integrated their chosen time-tracking software with their accounting platform, allowing for seamless transfer of billable hours directly into professional invoices. We also set up automated reminders and online payment options for clients.
The Results &
KPI Impact
This Texas design studio experienced a significant boost in their financial efficiency.
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Increased Revenue Capture: They identified and recovered approximately $50,000 in previously unbilled hours within the first quarter of implementation.
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Accelerated Payments: Their Days Sales Outstanding (DSO) decreased by 20%, meaning they received client payments significantly faster.
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Improved Cash Flow: The streamlined process led to a healthier, more predictable cash flow, reducing financial stress and enabling them to pursue larger projects.
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Boosted Efficiency: The administrative time spent on invoicing and follow-ups was reduced by 10 hours per week, allowing their team to focus more on design work and client relations, leading to an improved Revenue per Employee.
