Stable's Journey to Streamlined Accounts Receivable with Mesha
Stable, a professional services firm, was growing rapidly, expanding its client base and delivering exceptional services. However, this growth brought operational challenges, particularly in managing their accounts receivable (AR) processes. Delayed payments, increasing DSO (Days Sales Outstanding), and manual inefficiencies were creating roadblocks in Stable’s financial workflow.
The Challenge Stable Faced
As Stable’s operations scaled, their AR processes became increasingly burdensome, creating significant challenges across multiple areas:
Inefficient Payment Collection
Stable’s AR team was small and overstretched. With a growing number of clients and invoices, they struggled to follow up on overdue payments consistently.
Payment reminders were often delayed or missed entirely, leading to longer collection cycles and strained client relationships.
High DSO (Days Sales Outstanding)
The time it took to collect payments from clients was steadily increasing, creating cash flow gaps that impacted Stable’s ability to reinvest in growth initiatives.
High DSO not only disrupted financial stability but also hindered their strategic planning.
Manual Processes and Errors
Stable relied on outdated systems and manual workflows for invoicing, tracking payments, and reconciliation. These processes were prone to errors, such as incorrect invoice amounts, duplicate invoices, or missed reconciliation entries, all of which required additional time and effort to resolve.
Client Relationship Strain
Clients occasionally experienced delays in receiving invoices or reminders, which created confusion and frustration. These lapses in communication risked damaging Stable’s reputation and trust with their clients.
Resource Constraints
Stable’s internal team was spread thin, with AR management competing for time and resources that could have been devoted to client delivery or strategic initiatives. Adding more staff wasn’t a viable option due to cost considerations.
Results we Drove
Stable’s collaboration with Mesha is a powerful example of how outsourcing AR can drive efficiency, reduce costs, and enable businesses to focus on their core strengths. By leveraging Mesha’s AI-powered solutions, Stable transformed its AR operations, overcoming longstanding challenges and achieving sustainable growth.
