Bad Debt Default Order to Cash 
Your Virtual Credit Manager
JANUARY 17, 2023
By aligning sales with the goal of your order-to-cash process — to be paid in full — you eliminate many of the problems that would otherwise be handled by the collections staff. it just might help them pay you sooner! it just might help them pay you sooner!
Your Virtual Credit Manager
JUNE 25, 2024
In order to maintain optimal cash flow, your accounts receivable (AR) portfolio needs to remain in good shape. That can be a constant battle because all the mis-steps made during the order-to-cash (O2C) process will accumulate in your AR, and given time, clog it up.
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Your Virtual Credit Manager
JANUARY 7, 2025
Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. Photo by Jonathan Wheeler on Unsplash ) The Consequences of Poor AR Performance First and foremost, poor AR performance impacts your cash flow, which causes financial strain and operational challenges.
Your Virtual Credit Manager
OCTOBER 17, 2023
Not being paid in full or in part causes a bad debt loss. The first step is to estimate how much bad debt loss you can absorb as a percentage of sales in a year. Conversely, if the profit margin is low, bad debt losses will have a much greater impact, and credit controls will have to be tighter.
Your Virtual Credit Manager
DECEMBER 24, 2024
The only time AR comes to the forefront is when there is economic turmoil and an increased risk of bad debt losses. Need help improving cash flow? Firms that specialize in the order-to-cash process can be a better fit, but they are typically geared to serving larger organizations.
Your Virtual Credit Manager
FEBRUARY 13, 2024
This prediction, although bold, is corroborated by the broader economic data, including escalating corporate bankruptcies, tightening loan standards by banks, and the surge in delinquent debt balances and consumer debt. Go to this link to read about order approval best practices. it just might help them pay you sooner!
Your Virtual Credit Manager
AUGUST 29, 2023
These can include: Too little time spent collecting (due to other priorities or lack of staff) Lack of training and experience Order-to-cash (O2C) process breakdowns or weaknesses Credit policy too lenient Invoice accuracy issues Collection strategy not effective Economic headwinds And, the list goes on.
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