Improve Your Quote to Cash Cycle with ERP
March 19, 2019
Every business has its own processes and systems that work together, but as a business grows, these can become disconnected. As a growing business looks to make their processes more efficient, problems usually come down to multiple disparate systems that don't communicate with each other. One business process that can be the determining factor of a growing businesses success is the quote-to-cash cycle, which is the end-to-end processes involved in the sales.
Why is the Quote-to-Cash Cycle Important for Businesses?
Research by CB Insights states that cash flow problems account for 29% of failures by startups, making it clear that businesses need to pay attention to their financial processes during times of growth. The quote-to-cash cycle involves a company’s sales-related activities, including providing a customer with a quote on a product or service, completing a purchase, checking inventory for the sale, shipping, invoicing, applying a payment to a purchase order. It is imperative that executives have full visibility into their company's key financial processes, so they do not overspend during periods of growth.
Why Choose ERP to Improve Your Quote-to-Cash Cycle?
In most cases, the different actions in a quote-to-cash cycle will be handled by different teams with different processes and different software systems. This causes companies to do double the work and update multiple systems throughout the sales cycle. For example, many companies will place orders in an inventory management system, but will then need to utilize separate accounting software like QuickBooks to create invoices and bill clients. Forcing employees to manually go back and forth between the two systems for just one order can cause delays and lead to more frequent human errors. Businesses that implement an ERP system will quickly recognize the benefits related to their quote-to-cash cycle. Financial and operational processes can be handled in an ERP system, which saves time and money, and leads to increased productivity and efficiency.
Implement ERP today!
Impact offers Microsoft Dynamics 365 Business Central with a fixed-fee implementation model, meaning no estimates or hidden costs, just one upfront fee. Business Central was built specifically for SMBs and includes multiple financial charts that provide insights into the quote-to-cash cycle such as the Cash Cycle, Cash Flow, Income & Expense, and the Cash Flow Forecast chart. These different charts provide answers to questions such as:
- How long does the sales process tie up my cash?
- Should I increase or reduce inventory levels?
- When might a cash surplus happen?
Impact’s detailed assessment of a company’s business processes ensures that Business Central will be implemented successfully.
To learn more about Impact’s Enterprise Solutions department and ERP offering, call 866.544.7491 or visit www.impactmybiz.com/erp.