Improving cash management and processing efficiency

Manufacturing

We can help manufacturers improve cashflow and cash management and become more efficient.

From efficient credit management, cash allocation and invoice processing , to outsourcing management accounts and payroll, we can help improve cashflow and visibility.

Do inefficiencies restrict your cashflow and waste resource?

In a period of great pressure on manufacturers, cashflow is king. However, if you manually process transactions you maybe inadvertently restricting your cashflow.

Manual processing is slow and open to many mistakes. If money coming in from customers is not allocated quickly or correctly to the relevant account, payment could be stuck in your clearing or suspense account far longer than it needs to be. You may begin an unwarranted cycle of debt collection, incurring more cost. But worst, you may upset your customers.

At a time where many customers maybe delaying their payments to enable better cashflow, or because they are experiencing cashflow issues, having a considered and efficient credit management strategy is vital. 

Using current in-house staff to manage customer credit may take up considerable time. They may not have the necessary skills or supporting technology to make it efficient or effective. But recruiting a specialist credit manager may not be feasible, especially with the shortage of skills in the market currently and the cost of recruiting. 

Being unable to see the true scope of debt may open you up to risk, or restrict you from opportunity, if you cannot access cash. Visibility is key. However, it can be difficult for your finance team to see the true picture, especially if they are dealing with multiple systems and both paper and digital formats. Software or technology may help. However, knowing what to use and investing in it may be difficult.

It can also mean that your own invoice processing is hampered. You may face penalties or sour supplier relations, if invoices can’t be matched quickly or if they go missing or are directed to the wrong people for sign off. 

Your finance team may face additional pressure in peak periods of demand when you may recruit temporary or contract staff. This can add to payroll and HR complexities and risk legislative issues. Small errors here can cause major issues. But there shortage of payroll skills in the market driving up cost and time to recruit, for resource that may not be needed year around. It may affect your ability to scale up in the face of opportunity. 

At a time when manufacturers face immense pressure, having an efficient way of handling with transactional processes and having financial visibility is key. Parseq can provide that for you quickly. 

The challenges of cash management and invoice processing for manufacturers

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Debt Management

Debts are rising. A considered credit management strategy is crucial for cashflow.

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Cashflow

Failure to match invoices to payments increases suspense accounts and restricts cashflow. Visibility is difficult across digital and paper systems.

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Inefficiencies

Manual processing is inefficient and prone to mistakes. In-house costs are rising.

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Customer Service

Competitors are eager to take customers from you that have experienced bad service or slow processing.

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Recruitment

Time and cost to recruit and run specialist finance and HR people

Our capabilities

Get better financial visibility and improve cashflow

From better payment allocation to enhanced performance reporting and budgeting. Our solutions can unlock cash and opportunity.

We have helped many of our clients unlock cash and gain better control, consistency and visibility over their transactional process and finance.

With better payment allocation, utilising a highly automated process to match and reconcile payments, we have helped some of our clients reduce their suspense accounts by up to 50%.  We deal with both paper and digital formats, to ensure however your customers want to communicate or pay, then can. In doing so, errors were significantly reduced, radically improving customer experience and negating the need for unnecessary debt collection and further cost. It also freed up in-house resource.

Where our customers need an efficient credit management strategy, we have provided them with skilled credit management staff backed with advanced technology, to drive down costs and access cashflow. For some we have reduced their debt by 50%. 

 

Our Management Accounts solution takes further pressure off your finance team. In addition to providing accurate and compliant Management Accounts it gives them an extraordinary real time visibility across accounts, along with forecasting and budgeting tools. This includes integration into the Credit Management solution.

Economies of scale and saving can also be achieved with our payroll and HR admin service. Easy access to expertise with no investment, easy to scale up or down at any time depending on your needs. Typically we provide around 30% saving versus in-house costs with far more flexibility and tailored service than a payroll bureau.

Whatever your needs, we can help you unlock cash, save you significant money and the flexibility you need in a tough, ever-changing environment.

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Management Accounts

With comprehensive performance reporting and integrated forecasting and budgeting tools. Consistent view across multiple platforms. Fixed monthly fee.

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Credit Management

Full credit management services including invoice production, voice contact, query investigation and resolution to industry leading KPIs

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Cash Allocation

Multiple payment channels allocated to appropriate customer accounts through automated or manual activities

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Payroll & HR Consultancy

Expert payroll processing of weekly and monthly, with timesheets allocated to projects or cost centres. Plus specialist advice.

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Invoice Processing

Automated receipt and processing of supplier invoices (paper and digital), which extracts data and validates for payment.

The benefits

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Cost & Efficiency

Typically 30% saving

Less time and effort spent doing repetitive mistake prone work or chasing debt.

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Visibility

Insight

Exceptional performance reporting with real time data, including forecasting, budgeting, KPIs, debt.

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Speed

95% same day allocation

With levels of over 90% automation, payments  are allocated the same day.

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Cashflow

Increased

Substantially reduce your suspense account by up to 50% 

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Retention

Happier customers

Less mistakes and unwarranted payment chasing makes happier customers.

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Streamlined digital processes that create exceptional value.

Featured news & resources

Article

Smooth payment allocation can help manufacturers ease cashflow pressure

Craig Naylor-Smith, CEO of Parseq, discusses how payment allocation automation can help manufacturers manage cashflow pressures – and bolster customer experience – in a rocky …

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Resource

The Big Business Efficiency Report – FREE whitepaper download

Find out how businesses are accelerating their transformation plans in our Big Business Efficiency Report.

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Talk one of our manufacturers team today

Want to find out more? We would be happy to discuss your organisation’s challenges and how Parseq’s solutions could quickly provide you with real value.