Acumatica CC Payments: Get Paid Faster with Lower DSO

How Can You Improve Cash Flow with Acumatica CC Payments? Shorten Your Days Sales Outstanding (DSO.)

There is an accounts receivable struggle nationwide. If your company has historically relied on the quick collection of receivables to make payments for operational expenses, such as salaries, utilities, etc., you may have struggled for cash to pay these expenses from time to time. If you have an accounting system to track DSO, like Acumatica, you'll see that monitoring and correcting DSO is a high-value activity that will yield high results to your bottom line. To solve high DSO issues, a company must determine what factors affect sales and Accounts Receivable collection efforts.

In this blog, we'll take a closer look at how to improve your cash flow and lower your DSO value with tools integrated with Acumatica credit card processing. Spoiler alert: One way to get paid faster is to shorten your days to get paid. How is this accomplished? Let's read on...

Cash Flow as a Leading Indicator of Health

For companies of a certain size, or those seeking credit or investors, the cash flow serves as a crucial indicator of the financial well-being. By comparing the money coming in from paid invoices to the money going out for operational expenses, businesses can assess their financial health. One key metric used to measure cash flow is the Days Sales Outstanding (DSO). A high DSO value can be a cause for concern as it may indicate potential cash flow issues. It suggests that the company is facing challenges in converting credit sales into cash.

Driving Factors in DSO

To decrease DSO, it is important to consider the ability of customers to pay their invoices on time. This means that reducing DSO requires an examination of customer credit risk. A good starting point is to establish parameters for acceptable customer credit risk, which will help ensure that all new customers meet the required level.

Sales teams may encounter challenges when it comes to customer credit issues. It can be difficult to let go of a potential sale due to credit problems. However, successful companies often overcome this by implementing a combination of incentives and penalties to ensure that their salespeople and sales managers adhere to the new customer credit requirements. In certain cases, companies may also employ strategic tools like credit insurance to effectively manage credit risks without sacrificing an otherwise profitable customer.

The Essentials to Getting Paid Faster

To increase the chances of receiving payment faster, start today by ensuring that your customers have a clear understanding of their payment terms. One effective way to do this is by prominently displaying the payment terms on their invoices. For businesses using Acumatica's cloud-based ERP, this process can be automated through workflows, resulting in invoices that clearly outline the terms of payment and the due date.

Assess how often you communicate with customers about outstanding payments and the payment options available to them.

For example, some customers may be moving to electronic payments or prefer their employees use payment cards for certain purchasing. This can be a huge cost center if you're not intelligent and don't choose your payment partner and plan wisely.

Start Saving with Help from Paya's Integrated Payment Experts

Paya is the leader in delivering simpler, more efficient, and deeply integrated payment solutions with more than 25 years of industry experience and 2,000+ industry customers and partners. Paya is committed to delivering best-in-class integrated payment solutions across the full suite of Sage ERP products. We are proud to be Sage’s preferred partner for Integrated Payments in the US.   

At Paya we are unique from our competitors because we emphasize solutions engineering, engaging our domain experts as part of the early sales process. Through a collaborative but simple hands-on process, we develop a deep understanding of our partners’ current processes and pain points and requirements to ensure you get a platform and system with the capabilities you need. Paya has enabled businesses to optimize billing and invoice processes, deliver more payment options and flexibility to their customers, and improve back-office efficiencies.

Contact Paya's Acumatica Integrated Payments team to schedule a free consultation today! 

Learn more about how our credit card processing experts, solutions, and processes can benefit your organization and save you money!! 

See Paya's Acumatica Integrated Payments solution on ERPVAR's site.