Applying kanban thinking to Finance

    Written by HarmonyPSA on 2016-11-07 Last updated 2020-07-01 - 2 minute read

This is the third post in our series of posts trailing our new process-integrated board functionality. This one is targeted at the benefits of applying that thinking to your Finance processes.

Let’s take a step back and look at why kanban helps process management. The visualisation a board presents provides you with an instant overview, but in a structured way, like an interactive dashboard report. Not only can you see bottlenecks, you can resolve them from that screen directly. In effect, this gives you instant process management overview and data access - a very cool thing.

Now think about the role of Finance in a business. Their job is to process orders, manage contracts, issue purchase orders, raise invoices, recognise costs and revenue and most importantly, collect and pay out cash. These process activities span a wide range of different lists, under different menu topics, so making sure you are on top of things is tough and takes a lot of process and system knowledge.

With large businesses, you can have finance staff who are specialists, limiting their coverage and need to know the system. But with small to medium enterprises (our core market), we mostly see generalists who need to know it all. With very small organisations, it’s probably the owner on the weekend, someone probably not even trained in accounts. This presents them, and us, with a problem as it is finance users who need the most training and knowledge to get a sound grasp of the processes and accounts flows. In many cases, they are not from that discipline and/or part-time in the role. Once bedded-in this works OK for the common processes, but for exceptional activities (say raising a partial credit note to flatten a part paid invoice), they will naturally struggle to remember where and how that is done.

Placing all this activity on kanban boards may not be the whole solution, but it is certainly a great start.

With our standard boards, we have designed five default views that cover all the core processes finance have to manage, from order processing through to credit control. The views are all laid out logically, illustrating the process flowing from left to right, updated by Harmony as the business objects flow across system. If the boards are empty, nothing is outstanding. Wondering whether you have paid all employee expenses? Check out the month-end board for the ones that are still outstanding.

Because we have designed the standard boards to mirror the core finanical processes, it is simple to see where things are stuck (awaiting authorisation or progressing) and so quickly resolve blockages.

When we started this journey, one of our central tennants was to design a system that helps you get the right invoice out to the customer as early and as easily as possible (automating as much as we can) so that your business can prosper and grow with the least delay in cash-flow. But to achieve this, you had to know where to look. Now you don’t.

Five simple, clean boards will show you everything that is outstanding or pending across all financial processes and the whole company!

There has never been a PSA system so easy to understand and run.

If you are looking for a PSA solution that provides you with this degree of unparalleled financial visibility, from senior management down, call us to book a demo.

Book a demo

Read More:

How to apply Kanban thinking to your tech business

Building a kanban board in HarmonyPSA

Reduce finance administration and unlock your potential for growth



About the Author: Harmony Business Systems Ltd (HBS) is the company behind HarmonyPSA, the most complete cloud PSA software on the market. Developed with functionality to cater for even the most complex needs of MSPs, VARs, ISVs and Professional Services organisations, HarmonyPSA truly is the next generation of PSA systems. HBS is an independent company based in the UK. Follow HarmonyPSA on , LinkedIn or Website

Tags: Business, Features, financial process modelling, kanban board, process optimisation, General PSA, smart board application


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