CFO.com: Three Ways CFOs Can Better Align AP and AR in 2021
CFOs are under increasing pressure to boost cash flow, but achieving this goal means finding ways to align AP and AR processes. And that poses challenges.
What the white paper covers:
With Days Sales Outstanding (DSO) at its highest point in a decade, thus trapping working capital, CFOs are focused on freeing up that working capital by collecting payments sooner and extending outgoing payments terms. To do that, CFOs need to break down accounts payable (AP) and accounts receivable (AR) silos since these functions have competing objectives.
To increase cash flow and release working capital, CFOs need to not only align AP and AR processes, but also improve the relationship and flow of information between the two functions. How to assist both sides in understanding each other’s approach to working capital is the purpose of this white paper.
What you will learn:
- How supply chain finance (SCF) can break down AP and AR silos while providing flexibility to fine-tune working capital requirements
- Why automating AP and AR processes will reduce inefficiencies, increase visibility, and give CFOs the data necessary to predict cash flow needs
- Why CFOs and senior finance executives are forming strategic partnerships with business process outsourcing (BPO) enterprises in order to achieve shorter DSO and longer DPO