This eBook focuses on understanding the impact of operational costs on the overall revenue of mid-sized businesses. Explore the challenges and cost reduction strategies within Accounts Receivables, Accounts Payable, and Miscellaneous Cash Management to improve the bottom line.
Operational costs reflect the costs that your business incurs on a regular basis. With cost-cutting becoming a necessity, mid-sized business owners need clear insights into their day-to-day operational expenses. The situation is such that if you shout ‘cost reduction’ in a room full of mid-sized business owners, you’ll probably start an extensive discussion.
When it comes to analyzing the bottom-line impact, operating expenses is the topic of the conversation to cut overhead costs. According to Pymnts, 50.1% of mid-sized firms cite operating expenses as a major problem area.
To stay on top of business expenses, finance executives need to:
Saving on operating costs could help in expanding fund growth, deal with bad debt, lower overhead costs, and stay on top of the competition. In the subsequent chapters, we’ll walk you through a detailed operational cost analysis covering areas within Accounts Receivables, Accounts Payable, and Miscellaneous Cash Management.
Most businesses are fighting for survival amidst an unbalanced economy, unreliable suppliers, and a remote workforce. Here are some critical challenges faced by mid-sized businesses owing to bad financial health:
Due to higher revenue churn and increased uncertainty in the financial ecosystem, businesses are struggling to survive. Here are some listed impacts of a bad cash scenario:
Finance teams also deal with increased fraud risks triggered by the economic shutdown. This includes issues like asset misappropriation or even bonus maximization schemes. Here are some essential fraud risk parameters:
The low market demand affects the financial stability, cash flow, and causes worries about revenue. There’s no clear way to determine or evaluate the current market situation.
To reduce operating costs, the first step is to assess potential leaks across finance and non-finance processes and their overall impact on business productivity and profit.
There are many ways by which mid-sized businesses can save on operating costs, this e-book focuses on mainly three core areas: Accounts Receivables, Accounts Payable, and Miscellaneous Cash Management.
As a growing mid-sized company, organizing and understanding operational expenses is key to understanding the bottom-line impact. With budget and resource constraints, poor expense management can cost you millions of dollars.
To reduce costs, you need to streamline processes so that you can cut down the associated expenses. It’s important to evaluate the process costs involved in managing accounts receivables to analyze operating costs.
Here are some of the important elements in AR that may help in significant time and cost reduction:
The estimated cost for checks stands at $4 to $20 per payment
As businesses keep growing with new-age disruptions, it becomes critical to review and optimize operational costs that have a direct impact on business profitability. Understanding the current state of expenses is the first step towards optimizing operational costs.
With effective cost-management strategies, businesses can reduce process complexity and enhance process efficiency while simultaneously reducing costs and improving cash flow and working capital.
The RadiusOne AR Suite by HighRadius is a complete accounts receivables solution designed for mid-sized businesses to put their order-to-cash on auto-pilot with AI-powered solutions. It offers three AR modules — eInvoicing & Collections, Cash Reconciliation, and Credit Risk Management to improve productivity, maximize working capital, and enable faster cash conversion. Affordable, quick to deploy, and functionality-rich, the solution is pre-loaded with industry-specific best-practices and ready-to-plug connectors for popular ERPs such as NetSuite, Sage Intacct, and Microsoft Dynamics.
The HighRadius RadiusOne AR Suite is a complete accounts receivable solution designed for mid-sized businesses and SMBs to automate eInvoicing, Collections, Cash Reconciliation, and Credit Risk Management to enable faster cash conversion and maximize working capital.
It is quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, MS Dynamics, and scales to meet the needs of your order-to-cash process.
Lightning-fast Remote Deployment | Minimal IT Dependency
Prepackaged Modules with Industry-Specific Best Practices.