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The classic challenge as a wholesaler or distributor is getting product out the door and where it needs to go. This is what you do best. Your business is built around this.

Does today’s Covid-19 health crisis mean you need to change your AR strategies?

Yes. And no.

In a recent Paystream survey, pre-coronavirus, the numbers looked like this:

From the moment an order comes in through sales or customer service, AR specialists enter them into the accounting system to create the invoice, and the order to cash cycle begins.

Sales is the #1 financial statement that gets the most attention, closely followed by net income.

Order to cash (OTC) covers a wide range of processes from sale initiation to collections. Diligent CFOs track key ratios to make sure this important pipeline works efficiently.

“Order to cash” is a broad term. It captures every process and activity from order receipt to fulfillment and payment collection – a virtual catch-all bucket that is notoriously tough to measure.