How Fortune 1000 companies and SMEs automate credit and accounts receivable operations to improve working capital and reduce DSO and past-due A/R.
CFOs rightly refer to cash as the oxygen for the business. However, despite leveraging various working capital improvement initiatives, organizations continue to rely on working capital loans According to a survey report by Hackett, debt as a percentage of revenue has increased steadily over the last few years from 35% of revenue for the period 2008-2013 to 51% today, a 10-year high.
Where is this cash stuck? Mostly, in receivables as DSO increased by 4%. For the fourth year in a row, DSO degraded as organizations pushed payment term extensions on their supply base.
Finance leaders worldwide have to, therefore, pay more attention to collections and credit management process to define better credit policies and drive teams towards proactive collections to improve working capital.
This e-book has distilled insights from our study of credit and A/R transformation projects at 300+ organizations on how Fortune 1000 companies and SMBs reduced DSO by 15%-20% by implementing these eleven strategies.
Broadly, the strategies are categorized into the following buckets:
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