Three Ways Yfos Cloud ERP Can Help Improve Cash Flow

Yfos Cloud ERP provides an important tool in the modern company. Whether a home healthcare agency or a manufacturing business, cloud ERP offers unparalleled financial management and accounting functions as well as an easy way to track, manage, and budget company finances.

Having a good cloud ERP solution in your company can also help you improve cash flow. Here are three ways in which the power of an ERP system can be put to work for your business to improve cash flow over time.

Results of Poor Cash Flow Management
According to recent studies, 82 percent of small businesses shutter their doors due to poor cash flow management. If that’s not eye-opening enough, consider the ramifications of cash flow mismanagement.

Inability to pay vendors on time because there’s not enough cash on hand
Delayed or missed payments to employees, which cause high turnover and unhappy workers.Inability to purchase stock for resale, thus continuing the cycle of poor cash management.

Lost contracts because of an inability to fulfill contract terms
That’s just scratching the surface. Businesses who do not get a handle on their cash flow can face bankruptcy, failure, or sluggish growth. Those who do manage their cash flow adequately have a fighting chance against competitors and marketplace forces that challenge even the best-managed businesses.

Improvements in Cash Flow Due to Yfos Cloud ERP
What causes cash flow issues? Many things contribute to poorly managed cash flow. Lack of information can lead to bad decisions on how to spend cash on hand, which can result in poor cash flow management. Overdue receivables, unpaid invoices, and bad budgeting practices can all lead to cash flow troubles.

Yfos Cloud ERP systems provide a robust accounting and financial management system for companies. Cloud software runs over the internet, so that changes made to the system in one part of the company are reflected throughout the system almost instantaneously. If connected to a company’s warehouse management system, for example, the second that stock runs low, the system can alert managers to reorder products. Managers can view data immediately and make better decisions based on accurate information.

The three big ways that cloud Yfos ERP improves cash flow management, however, are as follows.

Manage Overdue Receivables and Invoices
Many cash flow challenges result from outstanding receivables and unpaid invoices. Failure to follow up on overdue invoices with customers who have outstanding balances can lead to cash flow shortages. On the flip side, failing to pay invoices by the due data can also lead to improper cash flow reports by overstating the availability of cash on hand.

The problem is exacerbated when companies fail to reconcile bank statements and credit card charges monthly. As time goes by, both sides of the cash flow equation, money in and money out, can become seriously unbalanced and inaccurate. And the longer such a problem goes on, the less likely it is that someone will find and fix it. Businesses that get into this situation often neglect other aspects of their accounting, too, exacerbating the problem.

With Yfos Cloud ERP, you can set reminders for many tasks, including paying invoices and following up on receivables. You can also automate processes, including sending past-due notices to customers who haven’t paid yet. Reconciling statements and charge accounts is easier, with simple one-step entry and even scanned receipts possible.

Automate Reports
Yfos Cloud ERP systems can produce timely, accurate reports. But did you know you can automate many common reports, so they are run on a certain date and routed to the appropriate managers? It is a great time saver as well as a help to improve cash flow management. You cannot manage what you don’t see, and automated reports ensure visibility and transparency into every aspect of cash flow management. Managers can see if any of their vendors have not been paid yet, ensure customers understand when invoices are coming due, and make any changes deemed necessary to better manage corporate cash flow.

Fix Shipping Delays
Reports from an ERP system cover a wide range of information. For example, if the warehouse is connected to the cloud ERP system, it can receive data on shipments and delays. The faster items ship to customers, the faster companies can bill for them. Any shipping delays from your company equal delayed payments as well as unhappy customers. Unhappy customers are less likely to make repeat purchases. Identifying and managing shipping delays can go a long way toward faster billing and payment receipt, thus improving cash flow.

Request a demo of our Yfos cloud ERP today to learn more about what Yfos can do for you and your business.

If you need any advice or quotation please contact with us:

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