O2C services: Reimagined
Many finance transformation programs historically put their efforts into procure-to-pay, travel and expense, and record-to-report processes, citing order-to-cash (O2C) as a department that lacks a business case with fewer team members, and that it’s too risky to touch as a customer-facing department.
We disagree—O2C drives the first line on the income statement and the first two lines on the balance sheet. It drives growth for companies, manages the risks associated with selling “on account,” and directly affects the time between delivery and receipt of payment. And the more seamless these processes are, the easier it is to create valuable, long-term relationships, improve your cash flow, and spend time adding value with your business partners.
Are you struggling with these challenges?
We can help you overcome your O2C frustrations. Here are a few signs it’s time to take a closer look.
- You have unapplied cash you can’t identify—and may even need to escheat cash back to the government
- Your billing process is manual and your master data is a mess, making it hard to keep track of past due invoices and delinquent customers
- Your auto-match hit rate for cash application is low
- Revenue accruals take up a lot of time and are difficult to track and reverse without manual effort
- Your cash and revenue forecasts reside in offline spreadsheets with low levels of accuracy
- You have challenges with collections effectiveness and/or bad debt and aging receivables
- Your credit function spends too much time on administrative tasks, and not enough time on its core mission of strategically managing A/R credit quality
When you make room for simplicity, it’s not just your day-to-day tasks that become easier. With less on their plate, your team can more accurately plan for the future.
Most companies will tell you that they provide the latest in machine learning and artificial intelligence—we do too. Our difference? It’s more than a concept. Our team has successfully executed real-world projects, like:
- Algorithm-driven and customer segmentation-aligned collector worklist auto-generation
- Optimized cash application, including Intelligent Character Recognition using static algorithms and adaptive machine learning application routines
- Cash flow and revenue forecasting, predicting the likelihood of default in B2B credit analytics
- Financial statement analytics, using AI to standardize financials as inputs into credit models
Our knowledge of the realities of these evolving capabilities, how CFOs can leverage them, and our decades of experience in O2C services uniquely position us to help you solve the most complicated of revenue cycle problems.
Our O2C offerings
- Current state process diagnostics and future state vision
- Detailed design and blueprinting
- Implementation and change management
- Master data cleanup and governance
- Escheatment process stand-up and support
- Customer credit risk analysis
- Cash application and auto-match hit rate optimization
- Customer segmentation and treatment strategies
- Collections effectiveness optimization and worklist generation
- Cash and revenue forecasting
- End-to-end automation, reporting, performance analytics, and continuous improvement
Go further with Clearsulting
At the end of the day, your O2C processes should be a win-win for your business and your customers. You need to get paid, and your customers want to receive the goods and services they purchased while spending a minimum of time on their own accounts payable function.
That’s where we come in. With modern technology, most (if not all) of the manual transaction processing can be automated—and activities like manually applying cash to open invoices, reviewing and escalating disputes, and making sales adjustments can be a thing of the past. When you’re ready to get the most out of your revenue cycle, accelerate your cash conversion cycle time, minimize A/R credit quality risk, and take costs out of the system, we’re here.
See how you can improve your cash flow and add value to your business partners.