How your company handles accounts receivable is more important than ever in today’s business environment. The average days sales outstanding (DSO)—meaning the average number of days it takes to collect payment after a sale is closed—is as much as 15 days higher for companies that have not invested in automating their processes than those who have. This type of delay can put pressure on many companies’ finances.
One way to help improve your cash flow is by empowering your team to shine a spotlight on your accounts receivable processes. Many companies find that fine-tuning how they are handling billing, invoicing and the receipt and tracking of payments can bring new efficiencies and savings, reducing the need for outside financing. Often, transitioning to using digital tools, automation and artificial intelligence is a vital part of these efforts. But executive buy-in is critical: it has to be part of the company’s vision.
Here are five ways to initiate change in your organization