Improving Days Payable Outstanding With Order-To-Cash Software
How To Improve Days Payable Outstanding
For executives in the finance department, it is paramount to manage Days Payable Outstanding (DPO) in manner that efficiently balances out cash flow without increasing credit risk. For this reason, various software and SaaS solutions can be employed to optimize the process and increase efficiency while simultaneously reducing risks and costs.
The utilization of an Order-to-Cash (OTC) software can serve as powerful ally in the management of DPO, metric that demonstrates the average time taken for company to pay the suppliers for goods and services. Through the automation of the whole invoice process, from purchase order creation to capturing remittance details, OTC solutions can streamline the whole procedure and deliver notable DPO improvements on the long run.
A powerful OTC Softwareshould offer flexibility to fit the companies needs through configurable user interfaces and custom reports. Having control over the appearance, organization and presentation of data within the OTC solution will be beneficial, allowing users to locate desperately needed information quickly and efficiently. Compliance should be harnessed in the effort to improve DPO; with business rules and processes easily managed within the OTC software and automated decision making capabilities, companies can be better able to mitigate risks and remain compliant with the local regulations.
Moreover, process visibility is essential for the optimization of DPO. OTC solutions offer dynamic dashboard and dashlets that display up-to-date summary in an organized and accessible way, which allow users to take informed decisions quickly and demonstrate the efficiency of the invoice process. Robust search functionality should be present in order to aid the users in finding any required detail with pinpoint accuracy and without wasting valuable time in sifting through hopelessly extensive paperwork.
In conclusion, when managed correctly, OTC software has the capability to significantly reduce the all-important DPO metric and aid companies to remain on top of the order-to-cash process. Through automation and enhanced efficiency, OTC solutions equip organization with the right tools to assess, track, and ultimately improve the all-important Days Payable Outstanding.
