Optimizing Working Capital Utilization With An Order To Cash Software


The concept of proper working capital management is among the most essential in modern business. After all, this is where financial decision-making is at its most acute, as it with such delicate balance that company navigates liquidity and profitability of its operations. It is this element that makes an effective order to cash software powerful tool for any finance department. In this guide, we will make an overview of the techniques involved for leveraging this kind of software for achieving optimal working capital utilization.

Introduction to Order to Cash

Order to cash, more commonly abbreviated as OTC, is business process that involves the entire cycle of order fulfillment, from receiving customer orders to collecting payments. This is one of the major functions of accounting, particularly for those firms that provide services and products to their respective markets. As the OTC software automates great deal of the manual effort out of the whole process, it is not only great measure of efficiency in optimally managing working capital, but also crucial for accuracy in financial operations, as well as ensuring timely settlement of accounts receivable.

Overview of Working Capital Management

Working capital management can be defined as the administration of current assets, such as inventory and cash, as well as liabilities, in order to maintain steady level of liquidity within an organization. This is essential for any business to remain viable, as the maintenance of sufficient liquid assets is necessary for making sure that payments are made on time, keeping creditors sated and ensuring that inventory is adequately stocked. Thus, working capital management covers variety of areas, such as the management of accounts receivable and payables, inventory control, cash-flow forecasting and payment collections.

Techniques for Optimal Utilization

For successfully utilizing an order to cash automation process, the focus of finance manager should be on streamlining the entire process. Business process management, in other words, becomes necessary tool for prospering, as it allows for analysis of performance metrics and for subsequent reformulation of procedures for optimally leveraging working capital.

The kinds of techniques finance manager can use for proper working capital management include negotiating different payment terms with creditors, whereby enough liquidity is retained to make timely payments; analyze receivable performance in order to identify collection issues and prevent any slowdown of cash inflows; maximize inventory turnover through greater demand visibility, purchase and production planning; and increase efficiency in the accounting process.

Integrating the OTC Software

In order to reap all the benefits that order to cash software can provide, finance managers must integrate the system into their existing operation. To this effect, first, one must making sure that the system is capable of leveraging existing accounts and business practices. Then, various configurations and customizations must be made in order for the OTC software to operate in co-dependent manner with the existing financial application. This process can be managed simultaneously by both the IT and the finance departments.


All in all, order to cash software is powerful tool in meeting the need for an efficient working capital management process. It is for this reason that proper integration and streamlining is essential for the successful application of the software within business? operations. By following the best practices outlined in this guide, finance managers can highly reduce the time needed for managing the OTC process, and leverage it to the fullest extent for obtaining the best possible outcomes related to working capital utilization.