Optimizing The Order-To-Cash Workflow With A Working Capital Strategy


Developing and deploying viable working capital strategy can have huge impact on an organizations order-to-cash process. By taking holistic view of the cash flow and streamlining several key components, businesses can gain notable benefits from the use of an integrated order-to-cash system.

The heart of successful working capital strategy revolves around positive cash flow and is centered around various elements of the companies order-to-cash process. To optimize the account receivables, businesses need to master the following steps:

1. Calculate Net Working Capital: Taking stock of businesses current financial situation is essential to understand working capital and optimal cash flow. Companies need to determine the value of their Total Assets, less the Total Current Liabilities to understand their Net Working Capital. This can be done with the right software that allows businesses to identify and compare operations to gain visibility into their cash flow.

2. Detect Bottlenecks: In the order-to-cash process, speed is of the essence. Companies need to analyze their purchase-to-pay, order-to-cash, and payables systems and determine the timeline for each step, such as invoicing, credit/debit memo, delivery, returns, and other related orders.

3. Establish Solutions: Companies need to address the issues that unnecessarily delay their order-to-cash process by establishing efficient solutions. This can be done by hiring experts and leveraging the right automation technologies and software that specialize in the order-to-cash process.

4. Analyze Outcomes: By keeping track of the outcomes produced by the order-to-cash process via accurate measurements, companies can identify opportunities to streamline their processes and optimize their working capital strategy. This can help businesses to reduce costs, optimize their working capital, and speed up their order-to-cash process.

5. Leverage Expertise: Working with reliable software specialists and experts can help companies to produce the most optimal order-to-cash processes. With the right team, businesses can evaluate the effectiveness of their working capital strategy and identify ways to improve their operations and optimize their cash flow.

Executing an effective working capital strategy can have tremendous impact on businesses performance. Companies need to take the time to understand their Net Working Capital and ensure that their operating processes are streamlined and efficient. By leveraging the power of specialized software, businesses can gain significant insight into their financial situation and optimize their order-to-cash workflow.