Better cash flow
We will discuss the (financial) benefits in more detail later in this article. But we can tell you right now that a well-functioning and efficiently organised Order to Cash process leads to lower costs and higher customer satisfaction. In addition, thanks to automation fewer errors in orders, contracts and invoices made. Invoices are also paid faster, making improve your cash flow and working capital.
Order to Cash also for SMEs
The modern solutions ensure that different departments as well as your customers collaborate perfectly on a single platform, on which all software, data sources and other applications come together. And no, not only companies with more than 150,000 invoices a year benefit. It is also more than useful for SMEs to implement components from the Order to Cash cycle. This cycle consists of the following (sub)processes.
Cost savings and process improvements
The aim of Order to Cash is thus to achieve cost savings and process improvements, without disrupting your operations. Indeed, these process improvements will allow you to better focus on your core business. Ultimately, as a result, your business will be better able to even more efficient and more orders receive, input and process without losing control of it. In other words: it pays to take the Order to Cash process down to the beating heart of your business to make.
Benefits Order to Cash
List the key benefits of a well-designed Order to Cash process:
- Cash flow protection
Payments take place faster and the debtor payment term (DSO) is reduced. As a result, your cash flow is optimised and more predictable. The result: effective management of your working capital.
- Less external funding
Better cash flow reduces the need for external financing. This has positive implications for your creditworthiness and debt-to-equity ratio.
- Credit risk control
You get detailed real-time (!) insight into the financial situation of potential and existing customers. You can easily compare data with your own billing and payment data.
- FTE savings
By automating manual processes, you reduce the number of queries about orders and invoices. Queries that now cost FTE (and therefore money).
- Future-proof
With a well-designed Order to Cash process, you can meet the requirement of governments and large companies to invoice electronically. Alternative (future) customer payment methods are also easy to implement.
- Simple distribution
Invoices, reminders and other documents can be sent in various formats through various channels and systems.
- Compliance with laws and regulations
Your invoices always comply with tax and VAT regulations in all major geographical regions. This way, you always comply with laws and regulations.
- Sustainability
You reduce your paper consumption and realise a rapid transformation (fully) digital business operation.
Convinced of the need and importance of a good Order to Cash process? We will be happy to advise you on the steps you can take with your business.
