Billtrust Presentation - CFO`s Everest v2.pptx

DSO
Conquering the CFO’s Everest
Best Practices to Tangibly Lower DSO
Presented By:
Nick Babinsky
Senior Product Manager
Billtrust
“
You can be profitable and still be bankrupt. You
must closely plan and monitor your cash flow to
be successful and stay in business.
-  Tim Berry
© 2016 Billtrust
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Cash Flow
Potential Cash Traps:
§  Cash sitting in non-interest bearing accounts
§  Unnecessary or underused inventory
§  Fixed assets: building, equipment, cars, etc.
§  Uncollected Sales (Accounts Receivable)
© 2016 Billtrust
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Is There a Need for a Strategic Invoice-to-Cash
Solution?
90% of participants agreed that the
invoice to cash process was strategic
to their organization:
Yes
No
Not sure
§  “Address manual processes and
non-value.”
§  “Decrease our DSO.”
§  “Need a system that could meet
customers needs.”
§  “Handle multiple inputs from
different sources to help the cash
process.”
Billtrust Invoice-to-Cash Study, 1Q 2015
© 2016 Billtrust
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What is the most important metric for
Invoice-to-Cash?
DSO/Cash Flow is key metric followed by closing books on time and
minimizing matching errors.
7%
13%
Reducing DSO/Improving Cash Flow
56%
27%
Closing Books on Time
Minimizing Matching Errors
Lowering Invoice Costs
Speeding Invoice Delivery
33%
Billtrust Invoice-to-Cash Study, 1Q 2015
© 2016 Billtrust
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What is the most important metric for
Invoice-to-Cash?
DSO was the most important metric
§  “The faster cash gets in, the better off we are ultimately.”
§  “DSO is a very important metric that we look daily to manage
working capital.”
§  “The longer a bill stays out there, the more money we lose.”
© 2016 Billtrust
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How Invoice-to-Cash impacts time to get paid
Timing of
Invoice Delivery
Faster delivery
correlates with
faster payments
Timing of
Inbound
Payments
Manage Disputes
& Short
Payments
Electronic payments
received sooner
than paper checks
Faster visibility into
disputes allows for
faster reconciliation
© 2016 Billtrust
Customer SelfService
The more “buyers”
have 24/7 access to
invoices, the more
they can do for
themselves
Cash Application
Timing &
Accuracy
Achieve high rate of
same day posting
with automation
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What Should a DSO-Conscious Invoice-to-Cash
Process Do?
Automate
Accelerate
© 2016 Billtrust
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Invoice-to-Cash and DSO
§  Compared DSO of companies before and after they automated their invoiceto-cash process through Billtrust.
1 to 13 days DSO Reduction
84%
§  84% of companies had achieved a DSO reduction ranging from 1 day to 13
days with an average reduction of 9.3 days.
© 2016 Billtrust
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Invoice Delivery
§  Print/Mail Delivery
§  Shrink the country
§  Batch those bills
§  Use a multi-envelope strategy
§  Be “Postal Smart”
© 2016 Billtrust
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Invoice Delivery
§  Electronic Delivery
§  Offer multiple presentment
options
§  Exact PDF replicas
§  Customer self-service
§  Easy customer enrollment
© 2016 Billtrust
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Invoice Payment
§  ACH and Credit Card acceptance
§  Multiple payment options per
customer
§  Dispute handling
§  Easy posting to ERP
© 2016 Billtrust
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Cash Application
© 2016 Billtrust
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eAdoption Program
§  Have a plan
§  Use the invoice as a marketing tool
§  Email marketing
§  Internal training
© 2016 Billtrust
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Importance of Efficient Invoicing in
Customer Satisfaction
12.70%
49.50%
Extremely Important
Very Important
Moderately important
37.70%
Source: Billtrust 2015 Client Survey
© 2016 Billtrust
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What Do Your Customer’s Expect?
ACCURATE
ON TIME
EASY to READ
EASY to PAY
EASY to RESOLVE
DELIVERY METHODS
ABC CORPORATION
PO BOX 132546
DENVER, CO 80134
Meeting Buyer
Expectations
To Sign Up Visit https://www.cdw.billtrust.com
ABC
CORPORATION
PO BOX 132546
DENVER, CO 80134
© 2016 Billtrust
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Meeting Diverse Buyer Needs
Phone IVR
Online Portal (EIPP)
Email
Consolidator Sites
Fax
Collection Systems
(API)
Print & Mail
AP Systems
© 2016 Billtrust
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Automate
Accelerate
Billtrust’s &
Payment
Cycle Management Solution
Invoice Central
Client Connect
Fax
Dedicated eAdoption program drives
Power of
buyer enrollment
and payment
automation
&
adoption
integration
to across all electronic channels
lower DSO
Re: Your Invoice Is Now Available Online – Message(HTML)
Tue 12/12/2013 8:21 AM
billing@superiorsupply.com
Re: Recent Invoice Activity
To: johnsmith@b2bcompany.com
Superior Supply.pdf (41kb);
Invoices.iif (2kb);
Permit #3
Billtrust
Permit #3
Billtrust
Print & Mail
Email
© 2016 Billtrust
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Payment Cycle Management: Accelerate
Invoice-to-Cash
A flexible, automated invoice-to-cash solution
that meets diverse customer requirements
and speeds cash application
DSO
© 2016 Billtrust
Customer
Satisfaction
Cost
19
Questions
Nick Babinsky
Senior Product Manager
Billtrust
978-568-0606
nbabinsky@billtrust.com
© 2016 Billtrust
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