Corporate financial planning is the activity of developing both short and long-term financial goals for a business and preparing strategies to achieve them. This process involves deciding the investments and activities that are feasible and effective for the business to thrive in the long run.
Order-to-cash leaders have been juggling multiple roles and responsibilities while pivoting in their departments amidst the remote working situation- to ensure enhanced team productivity and optimize working capital. Right from enabling remote workforce transition, to changing approval workflows and process KPIs while evaluating technology options- there has been a lot going on in the world of order-to-cash.
This blog will talk about the various adversities that businesses faced during the initial COVID strike and the counter-attack by the A/R leaders, while also sharing some recommended strategies for corporate financial planning for the leaders looking to return to their offices.
Across interactions with our clients, HighRadius received some insights as to what challenges they faced due to the COVID crisis and the work-from-home situation and how they responded.
Here are some of the high-level insights:
As the curve subsides in several areas and lockdowns get lifted, the on-going economic concerns of safeguarding the cash flow and optimizing working capital are pushing businesses to consider their transition back to the offices.
According to a PwC survey, 78% CFOs are reconfiguring work sites to promote physical distancing.
Before returning to the office workspace, as an A/R leader, it is imperative that you plan and think through if you’re indeed ready to return. Here is a four-step checklist for you to look into before transitioning back to the office.
Once, you have it all planned out about how to transition back to the office, think through how your roles and responsibilities as an A/R leader would be redefined when you’re back and how you could modify the corporate finance plan for your business.
The pandemic has helped increase the awareness about the significance of the credit and accounts receivable function in the office of a CFO, simultaneously elevating the strategic importance of the work being done by credit and A/R professionals.
Here is a four-step guide to help you with the corporate financial planning for your business, when back at the office:
Focus on an A/R + Sales ecosystem to make not just sales, but profitable sales to safeguard your cash flow:-
Once you make an educated guess about their financial position, you can then estimate the timeframe to resume or begin working with the account.
We are caught up in the middle of a swell. It is difficult to say right from wrong just by looking at one or two factors. As per Gartner, 85% of AI-based digital transformation initiatives end up as a failure.
Order-to-cash leaders exploring technology right now cannot afford to make the wrong decision. With increased scrutiny on budgets and resources, leaders need to effectively evaluate every step, every action, and every decision when looking to implement a technology solution.
To help achieve this, Gartner provides us with comprehensive decision-making Cost Optimization Decision Framework that would allow A/R teams to make the right choice in this tough economy and hence help them- Sustain, Recover, Thrive.
Use this framework to evaluate how every decision you’d make would fare against what should be your top consideration right now. The parameters against which you need to evaluate any new decision are- the potential financial benefits of the decision, overall business impact, the time requirement, degree of technical and operational risk, and the investment requirement.
There are multiple levels in which a decision would impact each one of these criteria, but the most ideal and optimum choice would be the one making way for large potential benefits, positive overall impact, has minimum time requirement, low technical risk, and operational risk and minimum investment requirement.
A decision that checks off as many green boxes as possible is more likely to deliver long-term value to the business
Automate invoicing, collections, deduction, and credit risk management with our AI-powered AR suite and experience enhanced cash flow and lower DSO & bad debtTalk to our experts
HighRadius Autonomous Receivables Software Platform is the world’s only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Autonomous Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway – covering the entire gamut of credit-to-cash.