MADISON, Wis.--(BUSINESS WIRE)--Esker, the leader in document process automation solutions, has co-sponsored a new Aberdeen Group research report, Operational Cash Management: Streamlining Processes to Unlock Liquidity, by Cindy Jutras and William Jan, published November 30, 2010. Top findings demonstrate that companies achieve a high level of success in managing operational cash by implementing a strategic combination of process re-engineering and software automation.
Intended to provide guidance on effective operational cash management, the report focuses on streamlining processes to identify areas of cost savings. The report discusses capabilities and enabling technologies with respect to how they are being leveraged by top-performing companies in support of best practices and current initiatives. Criteria used by Aberdeen to distinguish Best-in-Class companies include:
- Days Sales Outstanding
- Accuracy in cash flow forecast
- Cash conversion cycle and discounts lost
Survey results in the report show common characteristics of Best-in-Class companies, with top performers being more likely to streamline and automate operational cash practices; regularly monitor forecast accuracy and automate the reporting of cash held and forecasted. The report also recommends specific actions required to achieve Best-in-Class performance, including automation of Accounts Payable and Accounts Receivable processes.
“Although we see early signs of recovery, a survey of over 100 financial professionals finds that 84 percent of respondents have increased focus on cash management over the past year (2009),” said Cindy Jutras, Vice President and Research Fellow and Group Director at Aberdeen Group.
“Best-in-Class companies are nearly 36 percent more likely than their competitors to have a clear assessment of liquidity,” added William Jan, Senior Research Analyst at Aberdeen Group. “By combining good access to cash data with cash flow information across all departments in an organization, top-performing companies are able to effectively gauge the success of their cash management initiatives. In light of the slow market recovery, cash management remains a top priority among executives. Best-in-Class organizations are leading their cash management initiatives by focusing their resources on demand planning to maximize working capital.”
“As cash is the lifeblood of businesses more than ever in times of economic turmoil, Esker is particularly happy to note that Aberdeen considers automation of business processes like AP and AR essential to achieve Best-in-Class status in cash management,” said Jean-Michel Bérard, CEO of Esker. “This new report reaffirms what we see in working with companies to automate processing of customer and supplier invoices — that end-to-end automation delivers real advantages over manual processes, including full visibility with a complete audit trail and real-time reports for cash forecasting. Along with increased order-to-cash and procure-to-pay efficiency, productivity gains, operational cost reductions, avoiding human errors and strengthening relationships with customers and suppliers, companies using Esker solutions get results that directly reflect Aberdeen’s Best-in-Class performance criteria in terms of lower DSO, fewer late payments, additional cash and more discounts.”
Complimentary access to Operational Cash Management: Streamlining Processes to Unlock Liquidity is available for a limited time at: http://www.aberdeen.com/link/sponsor.asp?spid=30410554&cid=6682.
Esker is a recognized leader in helping organizations reduce the use of paper, eliminate manual processes and simplify IT landscapes. With its comprehensive platform, Esker delivers the benefits of automated document processing as on-demand services (SaaS) and on-premise solutions. Customers achieve significant operational efficiencies, cost savings and ROI in as little as three to six months while gaining visibility and control within order-to-cash and procure-to-pay business processes ranging from sales order management and accounts receivable to purchasing and accounts payable. Founded in 1985, Esker operates globally with more than 80,000 customers and millions of licensed users worldwide. Esker has global headquarters in Lyon, France and U.S. headquarters in Madison, Wisconsin. For more information, visit www.esker.com. Follow Esker on Twitter and join the conversation at twitter.com/eskerinc.
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