Reduce Your Days Sales Outstanding with Automation

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See how automation helps to avoid the inefficiencies and exceptions that keep accounts receivable from reducing their Days Sales Outstanding (DSO) metric in this new CFO e-book.

The CFO has many goals and responsibilities. But undoubtedly getting the company paid faster and more efficiently will be a major concern. And that means improving the performance and capabilities of accounts receivable. Achieving those goals is the subject of an e-book written by CFO and sponsored by Corcentric, “The CFO’s Guide to Automating Accounts Receivable.

The authors discuss how automation, technology, and e-invoicing is changing the AR landscape and enabling companies to reduce their DSO, a top measurement of performance. The ability to do this is hampered by the traditional, manual-based processes that most companies use, especially when it comes to managing invoice exceptions. Those companies that have turned to automation solutions that provide cloud-based portals or direct data feeds for transactions are doing substantially better at reducing the exception rate. The e-book cites an IOFM study that found that “paper-based receivables generate an exception rate of 5 percent to 20 percent, depending on the industry and complexity of the receivables, compared to 1 percent to 2 percent for best-in-class electronic receivables.
Companies shouldn’t assume that simply sending invoice via e-mail means they’ve achieved the benefits that automation can provide. But sending an email still necessitates that customer converting the emailed invoice back into paper. Instead, the company should be looking for a solution that allows their customers to drop an invoice directly into an AP workflow. CFOs should think strategically when considering automating their AR and should implement a solution that:

•Offers a billing process that is most efficient for the company while also giving customers the flexibility to receive invoices in a format that they prefer
•Has analytical tools that can be used by CFOs and other finance management executives to provide them with not only full visibility into current cash flow, but also with the ability to create more accurate and timely forecasts
•Brings in finance and technical professionals who have substantial expertise in financial operations, including credit and collections management, along with dispute resolution
What’s clear is that CFOs will be able to better manage their working capital once they improve the performance of their financial processes through automation. The benefits, according to the e-book are many. “Automated solutions can accelerate payments, shrink DSO, reduce bad debt and even remove credit default risk. Outsourcing credit and collections activity to a well-qualified provider opens up the company’s resources to focus on its own business growth.”

For more details, download the CFO e-book.

Matt Clark

About Matt Clark

Matt Clark is the Chief Operating Officer for Corcentric, responsible for overseeing day-to-day operations and ensuring companywide alignment with competitive strategies to enhance marketplace execution and service delivery for Corcentric’s customers. He will oversee all software engineering and operational efforts, including implementation, client services, integration, and IT infrastructure. Most recently, Matt was Vice President of Operations for Corcentric. He joined the company in 2004 as Director of Sales.Prior to his tenure at Corcentric, Matt worked in various key roles at Infolinx System Solutions where he managed the implementation of records management solutions at large government agencies, including The National Institute of Health (NIH) and DC Child Support.Matt received his degree from the University of Maryland

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