Writer of article: John Ivar Halvorsen
In the last article my colleague, Grete Branum, discussed three important cash management issues:
In this article I will address other solutions in the area of cash management that can help a business improve its liquidity. DNB has developed a number of solutions that enable businesses to get a better overview of their finances, make better financial decisions and improve their liquidity. The idea is to draw attention to some factors that can contribute to this.
Does your company have substantial accounts receivable?
Does it take a long time to update your customers’ sales ledger? Would you like it to go faster? You can speed up the process of updating the customers’ sales ledger by including a unique reference number in the payment details that identifies the customer and the invoice and follows the payment from the payer and all the way to your sales ledger. In Norway, this reference number is called a KID (Kundeidentifikasjon = customer ID). To send invoices with KIDs, you need to have an OCR agreement with the bank.
If your company wants to identify the payment by means of other information such as the payer’s name, address and pure text “DNB Innbetaling Pluss” (Cremul) is the ideal solution.
Both OCR and Cremul make it possible to reconcile the company’s sales ledger automatically, which contributes to more efficient liquidity management. This provides major advantages for the company through:
Invoice processing – a time-consuming internal process
Does your company spend a lot of time on processing incoming invoice payments? Do you use a scanner? Does your reconciliation process involve a lot of manual procedures? What if incoming invoice payments could be automatically reconciled in your sales ledger. What if you could send invoices directly from your accounting system and send them to the recipients electronically.
With the invoice service, eFaktura B2B, your company can send invoices to customers and receive them from suppliers electronically. The service streamlines invoice handling and entails major cost cuts compared with traditional tangible paper invoices.
Good control and a full overview of available funds.
Irrespective of whether the perspective is days or weeks, it is crucial for a business to keep good track of its current and future available funds. DNB has provided a liquidity prognosis tool in DNB Connect that uses up-to-date information from the bank and the company’s internal systems to estimate the company’s future liquidity.
Detailed budget items can be included in the liquidity prognosis to enable the company to include budgeted payments in the prognosis and thereby get a more complete picture of future liquidity needs.
If you would like more information or want to discuss the above, please contact your CM adviser, call us on (+47 915) 04800 or contact the author of this article.
OCR
Optical character recognition
Cremul
Multiple Credit Advice Message
KID
Customer (and invoice) ID: 2 to 25 digits
eFaktura B2B
business-to business e-invoice
