Cash Receipts Projections
Determining cash flow
projections is a significant factor regarding the success of
an organization. The knowledge of a client's past behavior
is the best tool for determining their future behavior and
subsequent corresponding courses of action.
Many circumstances can influence a
customers ability to pay, such as an economic downturn,
or an unexpected event within the customers company. With
this information available, staff members can make informed,
intelligent decisions about client status and determine the
most appropriate means of action.
However, outside of
the above factors, based on the past behavior, a company can
determine total inflow of the cash from your accounts
receivable based on Avg. Days Outstanding,
Avg. Days to Pay and Avg. Days Past Due. CollectSoft
provides the ability to analyze and manage all these factors when
making company projections.
Average Days to Pay
Days Past Due
Average Days Outstanding
view Cash Inflow Detail
Credit Issuance or Settlement
Overall Credit Issuance by AR and Sales staff.
view Accounts Receivable by staff member
analytics to view Accounts Receivable collection by
company, territory, Sales Person.
how and why you are getting paid
Organization Need this Functionality?
Knowing your projected cash receipts will help you plan
for future purchases, and ensure you meet your corporate
do you know when and what cash is going to be received?
Although this is not a perfect science, and not
withstanding other variables, your customer's past
paying behavior will determine when you are going to
receive your cash (based on days that they have paid).
All organizations depend on customer's payments for
product and services to exist and prosper. They need to
know what their projected cash flow is to determine what
their budget will be.
CollectSoft© has excellent view into your customers past
payment behavior and cash payment analysis.
Is it economy or is it our customers?
began to take turn for the worse, we began to notice our
cash inflow was getting smaller. Trying to meet our general
we noticed delays of payment from our customers. Our account
managers were attributing late pays due to economy; however,
after analysis of our accounts receivable past history, we
found that our customers were always late payers. What had
changed was that our sales were reduced by a large margin,
thus consistent cash flow was shrinking, and subsequently
shrinking our reserves. We began to look for ways to
decrease our days outstanding on our overall accounts
receivable, which proved to be difficult for our business.
Our customers had become acclimated to paying late, and
determined if they couldn't pay late, they might do business
elsewhere. After much consideration, we found that our only
alternative was to retrain our customers to pay by the due
This retraining required
gentle reminders, maintenance of contracts, notes regarding
their accounts, and consistent account updates. Giving
access to Sales Managers, Project Managers to the Accounts
Receivable also proved very beneficial, as they were aware
of the customer's status at all times and were able to work
with them accordingly. Our software was key to this -
enabling access, notes, and detailed reports from anywhere,
with email and follow up capabilities.
True story from a CollectSoft User