Investors and stockholders alike watch the success of your business with a sharp eye. Key to pulling through the years of clinical development, sales team efforts and the coordination of the trade and distribution teams is timely and accurate financial management. At the end of the day, it’s the bottom line that counts. That’s why many of our clients rely on the Financial Operations team at Cardinal Health 3PL Services to handle their order to cash management.
In an effort to improve the focus and prioritization of activities and create flexibility and scalability so that we can grow with your business, the Cardinal Health 3PL Services Financial Operations separated team duties in June 2020.
The Accounts Receivable team now operates as two separate teams, Cash Application and Collections/Deduction Management with roles and responsibilities outlined as follows:
- Cash Application
- Applying daily cash receipts to open invoices
- Reconciliation and completion of month end close documentation
- Pursuing automation and process improvement opportunities to drive efficiency and accuracy of cash posting
- Collecting payments on past due invoices
- Partnering with internal teams and customers to resolve or offset deductions
- Provide weekly Client Account Summary (CAS) reports
In addition to streamlining our processes, the change in structure also increases the number of Account Receivable resources managing our client accounts. Feedback from our client teams has been positive and collection metrics have remained strong, with >97% of A/R current.
To further understand (or educate your teams on) the complexities of order-to-cash management, check out our recent white paper, “Order to cash fundamentals.” Stuart Martin, Director – Financial Operations, reflects on industry trends impacting cash collection and the nuanced differences that impact collection success in traditional and direct distribution models.
From order management to invoice collection, a heightened focus on Accounts Receivable (A/R) can help your company optimize your order-to-cash process. Our team currently manages over $29.8 billion in receivables annually, and that experience can pay off for your business. To learn more about how our team organizes our resources to meet your needs, or to evaluate adding order-to-cash management to our partnership, contact your Client Relationship Manager.