Cash is King... , so improving cash flow is critical for any company (lowering liquidity risk, reducing borrowing costs,...), and the main key for cash flow is timely recovery of the account receivables.
Collecting receivables is hard even in the best of the situations (nobody wants to let go their hard earned money) and in times of crisis like today is harder: increasing DSO and delinquent days, bad debt, disputes,...you name it!
So, what can we don to improve cash flow? Streamline the back-office processes and automate as much as possible the accounts receivable team: making the customer ´experience (from order to payment, order2cash) as smooth as possible, empowering customers with digital invoicing and payment options, on-demand help, and other easy interactions that show a customer-centric approach.
Companies that just settle for old ways of managing receivables, or trust on technology that only simplifies back-office tasks without actually rethinking the process... they are putting their customer relationships at risk.... and their business too!
The root of the problem is the antiquated receivables processes that most businesses depend on. Their enterprise resource planning (ERP) systems are built to manage data, but nobody actually use the data to better serve customers.
So, what should we offer:
• Online paper-less experience, information at their fingertips or mobile ways
• Invoices should be easy and delivered as desired
• Payment method should be flexible while payment terms should be fixed (but agreed)
Make customer life easier on the payment experience and they will do more business with you and get paid