When your organization is growing quickly, you need to fuel that expansion with cash. You could try to borrow the money, but a better option might be to focus on speeding up your cash conversion cycle, according to a recent article on the CNNMoney website.
Think of the cash conversion cycle as the amount of time it takes for your business to recoup any money you spend on it. While every business will have different options for speeding up this cash cycle, many could benefit by automating invoice management.
Companies slow down their cash flow when they use inefficient invoice processes, as these often result in sending out invoices late or with errors. The wrong purchase number or format can bring payment to a halt until the issue is resolved. Automating and streamlining your invoice management is a great way to encourage customers to pay more quickly, shortening your cash conversion cycle.
Using electronic, automated invoice management, like Chrome River INVOICE, is faster and more accurate than manual processes that require your employees to enter data and handle paper invoices. It can also help an organization save money, as efficient processes often lower costs, and increased transparency provides valuable data for decision making.
CNNMoney also suggests looking for ways to speed up the sales cycle and delivery of your products or services. Overall, the best way to speed up your cash conversion cycle is to make it easy for your customers to pay you quickly. You can do this by providing streamlined electronic invoicing, the option to pay by credit card and discounts for early payments.
We’d like to hear from you. What are some additional ways that organizations can speed up their cash conversion cycle? Share your thoughts in the comments section!
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Our choice of Chrome River EXPENSE was made in part due to the very user-friendly interface, easy configurability, and the clear commitment to impactful customer service – all aspects in which Chrome River was the clear winner. While Chrome River is not as large as some of the other vendors we considered, we found that to be a benefit and our due diligence showed that it could support us as well as any large players in the space, along with a personalized level of customer care.
We are excited to be able to enforce much more stringent compliance to our expense guidelines and significantly enhance our expense reporting and analytics. By automating these processes, we will be able to free up AP time formerly spent on manual administrative tasks, and enhance the role by being much more strategic.