Why CFO’s want faster revenue
When it comes to revenue, we all want to make more of it. However, cash flow is often a deal breaker or a sales quarter killer. Managing the flow of cash and how fast you can collect on your sales or rebates can often result in missed opportunities across the organization. While we developed Celerity Enterprises, the biggest factor CFO’s and CEO’s said they love our software, was the ability to transform their revenue model by helping collect on accounts receivable that much faster. “If you can implement that today, you will save me millions!” was a company-wide quote given by a large Wholesale Manufacturing president.
As a C-level executives know, turning accounts receivable into revenue faster can provide several advantages, including:
- Improved Cash Flow: By accelerating the collection of accounts receivable, a company can improve its cash flow, which can be used to invest in growth, pay down debt, or distribute dividends to shareholders.
- Reduced Risk of Bad Debt: The faster a company collects on its accounts receivable, the lower the risk of bad debt. This can help to stabilize a company’s financial performance and reduce the need for additional funding.
- Increased Working Capital: Faster collection of accounts receivable can free up working capital, allowing a company to make strategic investments or expand operations.
- Improved Credit Rating: Companies that consistently collect accounts receivable quickly are viewed favorably by investors and lenders, which can improve a company’s credit rating and ability to access funding.
- Increased Revenue: Collecting accounts receivable faster can lead to increased revenue, which can be used to support growth and expansion.
- Better forecasting: With more accurate and timely data on cash flow, a CFO can better forecast the financial performance of the company, which can help to identify potential issues and take appropriate measures.
- Enhance Customer Relationship: A well-managed accounts receivable system can help in maintaining a good relationship with customers by providing them with clear, timely and accurate invoicing, payment terms, and dispute resolution process.
For more information how Celerity can close these gaps in your organization, contact us at sales@celerityenterprises.com