This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
The primary way most companies measure AR performance involves looking at the DaysSalesOutstanding (DSO) metric. Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. Need help improving cash flow? Final Thoughts.
The sales team learned very quickly that eliminating the friction from the billing and payment processes facilitated earlier customer payments, hence larger commissions. The bottom line was a 13 percent reduction in DaysSalesOutstanding (DSO) over a 6 month period in conjunction with invoice accuracy rising above 90 percent.
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.
To optimize the order-to-cash (O2C) process, it's crucial to understand the significant role Credit and Collections plays. This function must collaborate closely with sales, fulfillment, shipping/logistics, and accounting, all of which are integral to converting an order into cash.
By automating tasks such as invoicing, payment tracking, and collections, businesses can reduce manual intervention, minimize errors, and accelerate the order-to-cash cycle. Assess Current AR Processes Evaluate existing AR workflows to identify inefficiencies and areas that would benefit most from automation.
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.
In fact, a hands off approach will only serve to compound the weaknesses in your order-to-cash (O2C) process. Poor Credit Controls: Poor credit control practices can result in providing goods or services to high-risk accounts that are likely to pay beyond terms or even default on payments. Laissez-faire doesn’t cut it.
If the automated AR application can alert the collection team about the probability of any payments getting overdue, they can proactively reach out to such customers to try mitigating the risk of a likely payment defaults. Businesses need quick order to cash conversion that is supported by an efficient account receivable processes.
Optimizing the Order-to-Cash cycle: Accounts receivable teams trust Serrala Radically simplify even the most complex transactions, automate invoice posting, get paid quicker and with full visibility and compliance across your entire customer ecosystem. sites/default/files/styles/webp/public/202403/bg-industry-desktop.jpeg.webp?itok=sioB6G6S
Serrala helps you reduce the burden of financial management on your teams with intelligent invoice-to-payment, invoice-to-cash and treasury automation solutions that unify your business’s finances, boost decision velocity, and let you apply working capital quickly and accurately to strategic and tactical concerns. length>0){ jQuery('.mktoFormRow','fieldset[data-wrapper-for~="col1"]').each(function(i,
Since then, there has been continuous improvement towards the holy grail of straight-through-processing (STP) across the order-to-cash (O2C) process. Improved Cash Flow and Forecasting EIPP accelerates the cash conversion cycle by accelerating invoice delivery, thereby enabling faster payments and reducing dayssalesoutstanding (DSO).
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content