• Posted on: April 10, 2014 by: CashPerform

    Invoices need to be Quality paper not Toilet paper

    When looking at the supply and demand chains within the both the physical and financial supply chains one can see that the pace of technological advancement in accounting and treasury functions over the past few years has outstripped the processes in pace.

    In other words there is an argument that solutions are now often leagues ahead of what processes can actually achieve.

    Back to basics is required in that the acronym TALC© where T is for timeliness of invoicing, A for accuracy of the invoice re computes correctly, L for Legitimate – in that it meets with all countries legal requirements and C for Compliant – where it reconciles to the good received note, purchase order , milestone criteria should be applied with rigour and in a robust manner.

    An invoice becomes a financial instrument of repute if TALC© is applied throughout the organisation.

    Posted on: April 5, 2014 by: CashPerform

    Suppliers? Why your credit limit needs credit managing.

    Recent figures reveal a huge surge, up by 32% to circa £2billion, in alternative financing outside of the high street banks. Corporates are applying supply chain finance (SCF) programs and many other suppliers are using everything from personal mortgages to crowd-funding to keep their businesses viable.

    The suppliers utilising SCF programs are reviewing credit limits to ensure timely payment of invoices whereas the suppliers using crowd-funding and other platforms are using their supplier’s invoices to fund their expansion programs.

    Credit controllers should be credit checking suppliers on a regular basis, but they will need to interrogate management accounts and the management team to obtain the detail behind their suppliers funding arrangements. This could cause internal credit limits to be driven by subjective analysis, so care needs to be taken to include sales, procurement and even board level directors, as the organisations strategy could be at risk.