One Simple Trick to Speeding Up the Order to Cash Cycle

The order to cash cycle, from the moment a customer makes an order to the moment you receive payment, can be handled partially from your ERP system. Handling quoting, order processing, shipping and logistics can all easily be entered and automated, however, you’re missing out on powerful accounts receivable functions. Although your ERP system is great for some of the order to cash cycle, you truly need a solution that will automate invoicing and customer communication to ensure you get paid on time.
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5 Ways Electronic Invoicing Improves The Order-To-Cash Cycle & Cuts Costs

order-to-cash cycleWhen you think of the advanced technology businesses use to efficiently operate and manage critical business areas like finance or manufacturing operations, it’s surprising how many organizations accept the continued inefficiencies of paper-based invoicing and payment processes. According to Aberdeen, 72% of best-in-class companies create invoices electronically, because it’s a proven strategy to cut operating costs within the financial department and significantly speed up the order-to-cash cycle, here’s how:
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Must-Have Credit and Collections Features in Order to Cash Software

Every business requires the need to manage their order to cash process on some level and those organizations who manage it most effectively are using some kind of order to cash software features within their ERP system. Your ERP accounting system will have much of what you need on a basic level to manage the quoting process, order processing, shipping, logistics, and accounts receivable, but many businesses find the need to enhance those basic tools; especially when it comes to accounts receivable which notoriously lacks the automation and insights required to help businesses get paid on time. Luckily there are order to cash software integrations available give you the tools you need to run your order to cash cycle like a well-oiled machine, the key is choosing the right one. Here are some of the top features to look for in a solution:

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Speeding up the Order-to-Cash Cycle with Automated Credit Management

According to industry research from PayStream Advisors, 39% of invoices in the United States are paid late, 17% of customers do not adhere to credit terms, 52% of businesses ask for extended payment terms, and the average DSO is more than double the average payment terms! Statistics like these are exactly why businesses are putting more and more focus on carefully managing customer credit, but that’s a time consuming process that often creates order-to-cash cycle bottlenecks.
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Improving the Order to Cash Cycle – Start at the Beginning

Order to Cash Cycle

Having access to working capital is easily one of the biggest must- haves for a successful business, no matter your size or industry. Unfortunately, many businesses don’t have the fast access to cash they need because the transaction is getting tied up somewhere along the order to cash cycle. In this blog we begin a series that will look at some of the most common places cash can get hung up, how to identify red flags in your business, and what you can do to rid yourself of these inefficiencies. Let’s start at the beginning with sales order processing.
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14 Clues your Order to Cash Cycle is Broken

The order to cash cycle spans your entire business; it involves resources from marketing, sales, accounting, inventory, manufacturing, distribution, supply chain, logistics, and customer service. Due to the complex nature of the order to cash process and the complexity of transferring information from one department to the next. With so many departments and people involved, there are a huge number of places where your process can get stuck or slow down. How do you know you’re having order to cash cycle problems? There are usually a few telltale signs.
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How SMS Improved The Order-to-Cash Cycle by 40% with A/R Automation

Automated Accounts Receivable CollectionThere are many factors and layers that impact an organizations ability to quickly convert a quote to an order, an order to an invoice, and an invoice into cash. Some of the ways you can increase your order-to-cash cycle are more complicated than others, but a few of them are simpler than you might think. Believe it or not, invoice collection, is one of the easier areas to improve; All you need is the right tool for the job. Here is a story of one customer who was able to improve their days sales outstanding (DSO) by 40%, speeding up their order-to cash cycle  by 27 days!
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Best-In-Class Techniques for Order to Cash Improvement

Yesterday on the blog we outlined the pressure being put on organizations to improve order to cash and where it’s coming from- but what are they doing to make change happen? In this article we take a look at more industry research from Aberdeen showing which techniques best-in-class organizations are using to get their money to the bank faster.
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4 Reasons CFO’s Are Under Pressure to Improve the Order-to-cash Cycle

As a business executive how often do you stay away at night worrying about whether or not your payables have been paid? Probably not nearly as often as you worry about whether you have money coming in on time! While making sure you’re payables are in order is important, many companies put a much larger focus on the money coming into their business, not going out. The specific focus is on optimizing the order-to-cash cycle. According to Aberdeen Research, CFO’s and financial executives are under increasing pressure to improve their overall order-to-cash cycle for the following reasons:
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What Is The Order To Cash Cycle?

The order to cash cycle, also referred to as OTC, quote to cash, or O2C, is the process that defines your sales lifecycle. The process begins when a quote is requested or a sale is generated, through fulfillment, invoicing, collections, and recording that revenue in the general ledger. While the order to cash cycle is truly the lifeblood of every organization, many organizations struggle to optimize it to close deals faster, improve customer service, and increase cash flow.
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Back to Basics: The Order to Cash Cycle

order to cash

What is the order to cash cycle? Order to cash, also referred to as O2C, OTC, or the quote-to-cash cycle, is the term used to describe the set of businesses processes for receiving and completing a sale. The order to cash cycle begins when an order is placed and ends when payment is received and that payment is recorded in the General Ledger. Keeping in mind the process may change slightly from one company to the next, the order to cash cycle when broken into stages and sub-processes looks something like this:
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