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Symptom: Cash is every company’s life blood. Companies need to know where their money is going at all times. Without the right technology to aid their business in managing cash flow, companies often have a large time gap between when they pay their suppliers and employees to when they collect from their customers. They run into common cash flow problems as Accounts Payable and Receivable start trending in the wrong directions, and money that could be put to good use in new inventory or investments is tied up. This can cause a lot of stress in a fast growing company. Uneven cash flow can put a strain on a company’s relationship with their vendors if they are unable to pay invoices.
Solution: Companies can create accurate cash flow projections with a proper ERP system by having detailed information about their vendors’ invoicing and customers’ payment habits. This allows companies to better prepare for times when they might be more strapped for cash. Having the right ERP system can also help companies reconcile transactions more quickly to streamline the process in which their inventory turns into cash. Companies can quickly identify the longest outstanding receivables – giving accounting teams a quick, short-list to work through.
Read the previous posts to learn how to prevent your company from losing key customers to competitors or what to do when you find sales selling what they do not have because you are consistently running out of stock. However, nothing speaks louder than hearing from some of our own customers. For real life examples of how the right technology has helped Vision33 customers overcome the symptoms of their growing pains access the Vision33 Beginner's Guide to ERP.
For fast-growing businesses, the time to shift from small business accounting software (e.g. QuickBooks) to an ERP platform may already be upon you. But how do you know for sure and where do you begin sorting through your options?
These are challenging and often complicated questions to answer, and in most cases, the available resources online don’t clarify anything. For that reason, we consolidated all our early stage ERP resources in one place.
