The panel commented that everyone is wondering when the lockdown will start to ease out but are they considering the possibility of a second wave of crisis? The answer is: no one really knows so there are a number of scenarios organisations need to plan for. Staying Ahead of the Crisis with Robust Cloud-Based Technology This powerful combination of humans and machines can significantly help finance teams to control their DSO and bad debt driving a greater contribution to the improvement of cash flows. Access to real-time graphical data around where there is a high degree of outstanding debt along monitoring and alerts around critical KPI’s is crucial at a time when agility is needed. If the deductions analyst gets to know the validity of a deduction, it will be easier to resolve disputes and recover past-dues from the big box retailers such as Amazon, Walmart, etc.įor finance leaders, AI technology and analytics can drive visibility and decision making. ![]() If credit teams can predict an upcoming order block this enables them to work proactively with the other stakeholders such as sales to recover some or all of the sum owing.If a collector can see the timeline for some incoming customer payments, he or she can prioritise those most likely to default.For AR teams, the following use cases show how working symbiotically can result in a greater business outcome. He added that where automation can drive volume and speed, there is an industrious and productive space where humans and machines co-exist. We have to think that if someone is spending 3 hours posting cash, how can we add more value to his job by replacing the basic manual tasks. Gwyn shared an example in this context: Cash allocation is one such process that is usually manual. In a survey carried out during the CFO Virtual Agenda, almost 30% of senior finance executives revealed that they have identified order to cash automation as a necessity as an aftermath of COVID-19.Īutomation focused on manual repeatable processes frees up resources to focus more on strategic tasks. Role of Technology in Unlocking Cash FlowsĮven in 2019 BC(Before COVID), organisations accepted some inefficiencies in finance processes but perhaps didn’t understand their impact.until now. The pressure is on A/R teams but many still rely on manual and spreadsheet-based data analysis to do this. HighRadius Executive, Gwyn Roberts emphasized that liquidity is the key and from a receivables angle, organisations are seeking ways to bring cash quickly into their business. In a recent panel discussion with CFO Virtual Agenda and HighRadius, Guillaume de Pommereau, the former CFO of Hitachi Europe commented that ‘Cash is like oxygen to every business’. ![]() Atradius are reporting that there will be a 2.4%increase in corporate insolvencies, so unsurprisingly finance teams have become more cash-driven than ever as they pivot to operate in a protect-and-preserve environment.Ĭash is King: The Impact of Receivables on Improving Working CapitalĪs organisations are moving from a ‘survive to thrive’ phase, it is important to understand the cash positions in the short-term as well as on a long-term basis. Various factors impact cash flow, however, and 100+ CFOs and senior finance leaders told us in a recent HighRadius survey about their most significant business challenges currently:Ĭlearly this has been a worrying time. With the complete disruption in current operations, every senior finance leader has one key priority to focus on: IMPROVING CASH FLOW. Clearly, it can be called out that COVID-19 has initiated a stress management test for the finance and A/R teams. ![]() A survey by Global Crisis Monitor indicates that financial normalcy can be expected in 11 months - that has extended from 8 months reported in the previous month. Finance and A/R learnings on the role of technology on business health through a crisisĬOVID +3 and ‘normal’ isn’t happening anytime soon.
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