As a senior finance leader, you would agree that the finance department’s two focus areas are 1) running the business smoothly and 2) running the business profitably. No wonder that most finance leaders track working capital and gross margins.
However, finance execs have not been able to leverage A/R to improve the above metrics chiefly because they 1) Don’t have visibility into individual process KPIs and 2) Can’t track productivity of operations.
Research on 500 receivables projects at companies including Johnson & Johnson, PrimeSource Building Products and ShurTech Brands found that finance execs rely on 13 easily trackable KPIs to measure performance and track improvements in cash flows and profitability.