3 ways outdated systems create cash flow problems, cost overruns, and serious business risk

With the National Disability Insurance Scheme (NDIS) now in place, wrestling control over payment, cash flow and costs is vital for the health of your business.

The pressure is already enormous to deliver the same services for less funding.

The last thing disability service providers need is even more pressure on finances because inflexible, outdated, or manual systems just can’t cope.

With the NDIS rollout, the costs and dangers of inadequate systems have multiplied.
 

Here are three serious risks every provider needs to consider:

1.Payment changes cause cash flow nightmares

This one’s the most obvious and immediate…

The NDIS rollout has meant a shift in the way payment and purchasing is conducted. With the decision-making power now in the hands of participants, you are no longer able to get funding upfront, and instead must deliver the service before payment.

Unfortunately, most affected service providers I encounter simply don’t have the technology to support this change.

The industry average of an agonising 41 days for payment—largely due to inefficient or manual processes—may have been a difficulty under the old payment regime. Under the new one—with payment delayed until after service delivery—the cash flow slow-down could sink your business.

Compare that to the 5-7 day payment you can achieve with integrated systems that automatically provide NDIS aligned outputs and activity-based auditability. Getting your systems up to scratch can help you overcome looming cash flow problems and keep your business ticking over.

If you’d like to see how an integrated system like CTARS can speed up your cash flow, click here for a demonstration.