On average 60% of a company's cash is tied up in Accounts Receivables. Reserve Requirements, Deductions and Disputes trap working capital which needs to be released. There are three main "levers" a company can use to optimize working capital: Days
Receivables Outstanding (DSO or DPT), Days Payable Outstanding (DPO), and
Inventory Management. For most companies the largest "lever" is Accounts Receivable
which typically holds about 60% of a company's available Working Capital. If that
"operating cash" gets trapped in delayed customer payments, unearned-discounts
deductions (short payments), invoice disputes, bad debt reserve requirements (or worse,
write-offs), the company suffers financially.
If the sales quote is wrong, or there is a sales order entry problem, if something happens
in production-packaging-shipping or implementation, if the invoice does not meet the
three-way match, if the pricing-freight-tax is off or if the product does not perform - you
do not receive payment. Every company is constantly working toward improving working
capital performance in a very real way, this is everybody's job.
Cforia solutions are helping over 220 enterprises around the world manage over $240
billion in receivables today. We do this in over 55 countries and in 25 languages and we
understand how to obtain internal and external cooperation through data-access, solid
processes and methods, Cforia best practices procedures, automated workflow,
collaboration portals and electronic systems, to help you free up cash trapped up in
manual, legacy and outdated financial systems.
The Cforia solutions help you address the challenges today in dealing with projected
business changes and the ever increasing collections, dispute and credit risk demands
with flat or shrinking staff and more detailed/complex management requirements every
- Reducing Days Beyond Term (DBT) and accelerating the conversion of receivables
- Mitigating credit risk and portfolio roll-up of global client exposure
- Reducing write-offs and diminishing bad debt reserve requirement
- Shortening the discovery and resolution cycle times of client disputes and deductions
- Increasing Customer OTC lifecycle satisfaction and making it easier to do business
with your company
So the question invariably comes down to "Where do I start?", "How will I identify best
projects in order to support my CFO's goals and objectives?", "How will my team engage
to realize fast time to value for a given project?", and finally, "What can I observe in my
current OTC operation that has the potential to deliver a significant change impact and
deliver a home run for my finance team?"
To find out more contact us today.
<<"Our Shared Services Center
used Cforia Software to
implement a Thank You for
Your Business Collection
System. The system reduced
DSO by over 20%, resulting in
freed up working capital of over
$500K in the first year, while
satisfaction that results in
repeat Club Car business."
- Club Car