The Cash Efficiency Cycle and your Business Software

An area of great concern to most business owners is that of cash flow management and optimization of and improvement in the velocity of incoming cash against adding drag to the outflow of cash (slowing the outflow). Some call this the light version of Cash Efficiency Management but as I have found through research on many of the CFO related sites the definition is vague at best since many professionals have their own idea of what makes up Cash Efficiency as it relates to their business.

One thing is for sure and that is the software you run your business on can help or hurt you financially from a cash management position if it isn’t fully integrated, if it has bad or inaccurate data, isn’t utilized the way it was designed to be used (workarounds), has people who are not fully trained or training is not formalized (including continuous retraining and process improvement) and is not culturally accepted as the system of record.

A software solution that has none of the above traits succeeds in helping understand the cash cycle by not only providing accurate and timely information that is key in making short term and long term effective management and financial decisions but also providing key trend data that isn’t visible otherwise. The ability to see if vendors are typically late or early helps make “when to order” decisions. These decisions on key timing of products (hence money in the bank) are much more transparent and less risky to business in terms of shortages or interruptions.

Customer’s predictive patterns of collections helps you smooth the bumps in your own cash flow helping with better timing of key purchase or investments. MRP gives you visibility to when things are needed from a time phased perspective. It takes into account the lead time and when it’s actually needed to fulfill the order. Buying Patterns tell you what to buy or build.

The bottom line is this. If you’re looking to improve your financial efficiency your business software has to function like it was designed. Too many clients we see have bits and pieces working but have abandoned the project before it is competed. Sometimes it takes building out a second phase then putting a plan in place to do it! List the items unfinished or remaining to be completed. Put together a team and assign a project leader and finish what you started.

It seems many clients take an amazing amount of time to build manual workarounds but invest little or no time to fix or finish their software implementation (or they inherited it that way). An unfinished software implementation sends a message that a company is weak. Either it can’t make time to fix the most important tool a business has, doesn’t have the right people to figure it out, isn’t willing to use outside help to fix because it isn’t a high enough financial priority, has cultural issues and/or leadership issues. In the end it makes it look like the leadership is weak. How can it not be important?

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About e3consulting

Welcome to E3 Consulting. As proven experts implementing the latest CRM, ERP and Accounting Software in the Manufacturing and Distribution industries, we have made it the goal of our business to help our clients obtain the bottom line results their individual companies require. Educate, Enable and Empower For companies in the manufacturing and distribution industries, the ability to simplify their business operations is vital to their ability to succeed. E3 Consulting will provide the consultation; technology and the project management tools that companies need to improve their business processes and their bottom line. What We Do Does your company need a revamp of existing business systems? Do you have a technology project that is going beyond time and over budget? Are your costs out of control and productivity lagging? When you contact E3 Consulting, we take a hard look at the reality of your business operations and break it out into segments, to find out which aspects of your business process workflow need attention and which are working as they should be. It is our intent to look at your operations, your accounting, your workflow and your technology and create a cohesive plan that will have your business running effectively and efficiently. Our Process Every company runs differently, and it is those processes specific to your business combined with your workflow goals that give the staff at E3 Consulting the canvas we need to use our long history of business development, project management and technology to map out the path your company needs to follow to improve your bottom line. Think of your business like a lego block structure. Each block that is missing reduces the stability of your company. We can look at your overall operations and use our knowledge of the marketplace cutting-edge technologies to find the blocks that are missing from your overall business concept. We will introduce the right technology tools to improve your operations, and then continue in a project management position as necessary to ensure ongoing smooth operations. Our Experience E3 Consulting has a long and successful history of project management, business operations consultation and technology implementation and management within Manufacturing, Distribution, Service, Healthcare, Finance and Accounting businesses. Principal, Brad Tornberg, is a successful technical and business expert with an MBA in Finance from Farleigh Dickinson University and. He holds Microsoft Certifications for Customer Relationship Management (CRM) sales, implementation and training. He also has a series 6 and series 66 securities license and a New Jersey Life and Health License. He is well published having written many articles for The Practica
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