Transforming a municipality's financial management

Case Study

Transforming a municipality’s financial management


The company

A Portuguese municipality recognized for its commitment to providing excellent services to its citizens was facing significant challenges in its financial management. With a wide range of responsibilities, including economic, financial, and asset management, this public entity sought to optimize its processes to promote inclusive, smart, and environmentally sustainable growth, in alignment with its competencies established by the local authority’s law.

The challenge

The municipality’s financial department, comprising several organizational units and a total of 34 employees, was facing challenges in revenue collection and in the purchase process. There was a recognized need for improvements in the issuance of revenue documents, the control of receipts, the streamlining the recording of expenses, and the efficiency of payments to suppliers. The goal was to achieve greater efficiency and effectiveness in outcomes, reducing the average time taken for receipts and payments and decreasing the amount of outstanding debt.

The approach

To tackle these challenges, the municipality adopted a multifaceted strategy focused on implementing technological solutions and restructuring internal processes:

Design and implementation of PowerBI dashboards

To improve the management and monitoring of key performance indicators (KPIs), specific dashboards were developed and implemented, facilitating team meetings and data-driven decision-making.

Implementation of dynamic meetings and team management

Introduction of digital tools for weekly team management routines, focused on monitoring KPIs and implementing improvement actions.

Improvements in the revenue process

Automation in the cross-referencing of credit notes with invoices, and the implementation of monthly monitoring routines for debts older than 120 days were some of the improvements made to optimize the revenue process. Education and various licensing processes benefited from specific automations, aimed at the efficient notification of outstanding amounts and the automatic issuance of credit notes.

Improvements in the expense process

From eliminating unnecessary stages in the contracting process to the automatic integration of invoices, efforts were made to simplify and streamline the expense process.

These initiatives reflect a deep commitment to innovation and efficiency, and the approach adopted demonstrates a successful combination of technology and strategic management, establishing new standards of excellence in public administration.


The modernization strategy adopted by the municipality generated significant results, demonstrating a substantial advancement in its operational efficiency. The reduction of the average time taken to receive invoices from 8.8 to 1.7 days, showed an improvement of 81%. Concurrently, the average time to make payments to suppliers was reduced by 44%, from 9 to 5 days, which optimized relationships with suppliers and contributed to a more dynamic economic cycle. Additionally, the outstanding debt decreased by 13%, reflecting more effective credit management and an assertive approach in debt recovery. These results highlight not only the effectiveness of the solutions implemented but also the municipality’s commitment to continuous improvement and efficient management of public resources. This case study serves as an inspiring example of how the adoption of technology and the restructuring of processes can lead to disruptive improvements in the financial management of public entities.

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