Improving Cash Flow and Enabling Proactive Collection through Predictive Analytics
Comprehensive Order-to-Cash management and lower DSO (Days Sales Outstanding) can lead to increased cash flow, decreased financial costs, enhanced credit ratings, higher margins and heightened shareholder value. DSO is also a direct reflection of the strength of a company’s customer relationships, and is regularly used by the investment community as a key indicator of an enterprise’s market and financial strength.
Typical reasons that prevent Chief Financial Officers from playing a more proactive role in improving DSO include:
- Huge data sets requiring analysis across business units; this leads to a lack of visibility across BUs and regions
- A lack of analytical resources and time – this prevents companies from tracking and analyzing their DSO
- The absence of tools for delayed collections root cause analysis
- A lack of a clear methodology to enable effective drill down