Jenine Teixeira & Chris Tilden

Transcription

1 Jenine Teixeira & Chris Tilden

2 Agenda Cash Flow and the Order to Cash Cycle Demonstration Investment and ROI Next Steps & Q&A

3 Cash Flow and the Order to Cash Cycle Order Processing Invoicing Payment Credit and Collections Prevent the problem before it happens Get the invoice to the customer sooner Give them options and get payment up front Find problems sooner and manage the collection process

4 Order Processing - Preventing the Problems Using the Credit Checking functionality in MAS Using Pop-Up Memos and Reminders ing Confirmations to Customer to avoid problems later that lead to payment issues Using KnowledgeSync to send out Alerts on Open Orders for Customers with Credit issues Integrating with CRM for Customer history

5 Invoice Delivery Getting the Invoice to the Customer sooner Electronic delivery of Invoices with Paperless Office to Customers and Salespeople

6 Payment Give them options and get it up front Credit Card Processing Charge the card when you Invoice Charge the card during a collection call

7 Credit and Collections Finding and managing the problems Using KnowledgeSync to be alerted to problems Using Custom Office and Business Insights to track collection activities Using SageCRM to manage the Customer relationship

8 Improving Your Cash Flow with Sage MAS Demonstration

9 Review of the Tools Just Shown Included in Current Versions of MAS: Credit Checking and PopUp Memos Built into MAS A/R and S/O Electronic Document Delivery Part of Paperless Office functionality built into MAS v4.3 or higher Custom Office Likely already part of your MAS system Business Insights Explorer (BIE) Included in versions 4.10 and higher

10 Review of the Tools Just Shown Can be added: Sage KnowledgeSync Added module that triggers alerts and schedules Crystal Reports Credit Card Processing w/ Sage Payment Solutions Added module that allows integrated payment by credit card. Can be added or is included in Sage Extended Enterprise Suite (EES) SageCRM Integrated Customer Relationship Management system that can be added or is included in Sage EES

11 Investment Required Solution Credit Checking PopUp Memos Custom Office Business Insights Explorer (BIE) Credit Card Processing KnowledgeSync SageCRM Cost $0, included in A/R and S/O $0, included in A/R and S/O $0, included with most systems $0, included $1,300 and possible decrease in processing charge (or included in EES) $3,200 but varies depending on needs $500/$1,000 per user to convert to EES

12 Reduce AR Days Outstanding Assumptions Sales of $10m Cashflow expense (cost to borrow) is 1% of sales ($100k per year) AR Days Outstanding is currently 45 days Reducing Days Outstanding by just 5 days results in a savings of $11,000!

13 Reduce Bad Debt Assumptions Sales of $10m Bad Debt expense is 1% of sales ($100k per year) Average write off is $10,000, (10 invoices written off per year) Eliminate just one Bad Debt results in a savings of $10,000!

14 Personnel Savings Assumptions 50% of one person spent on Collections Salary plus benefits of $50,000 Reduced personnel time by just 20% results in a savings of $10,000!

15 Customer Retention Assumptions Average customer buys $25k per year Loose at least one customer per year over preventable collection issues Prevent just one customer from leaving by preventing collection from becoming an issue, saves $25,000 a year in revenue (at 20% NP, $5,000 to the bottom line).

16 Potential $$ Impact to Bottom Line Reduce A/R Outstanding - $11,000 Reduce Bad Debt - $10,000 Personnel Savings - $10,000 Customer Retention - $5,000 Total Potential $$ to Bottom Line - $36,000

17 Next Steps Start using the tools you already own Consider adding those tools that might help If you need our assistance to purchase or implement any of these tools, contact: Tony Bella (781)

18 Questions?