Free: F&A Outsourcing Optimization Opportunities Cheat Sheet

Executive Cheat Sheet Contract Health Check & Benchmarking

F&A Optimization Opportunities

Accounts Payable

Accounts Receivable

Business metrics

Business metrics

Improvement levers

Improvement levers

• Automated monitoring of process leakages and elimination • Automated flagging of payments before due dates • Batch monitoring and rationalization of payment terms

• Predictive collections and bad debt analysis tools • Automated collection reminders and customer alerts • End-to-end integrated and dynamic O2C workflow system • Customer risk monitoring and segmentation analytics



• Standardization and automated trigger alerts for AP • AP resource training and dynamic payment monitoring

On-time payment

• Centralized mailroom • Use workflow tools to control order queries • Escalation based follow-ups

Average time to bill

• Automated three-way match, standardized controls, and exception monitoring • Integrated end-to-end workflow system for buyers and approvers with read-only access to strategic vendors • Mail room virtualization • Implement matching feature in ERP • Establish end-to-end process metrics for decision making • Controls at all levels and automated process standardization • Increase percentage of straight pass-through for invoices • Increase touchless processing via automation and e-invoicing • Standardized AP shared services construct versus BU based

Error-free invoicing

• Re-define algorithms to increase the first pass yield • Perform RCA and train users accordingly • Customer risk monitoring and segmentation

Cash application process

PO penetration

• Digital dashboard • Electronic bill presentment

Cash application time

• Image-based workflow – OCR implementation • Automated invoice and cash application tools • AR helpdesk and collection targets • TAT for Disputes

Agent productivity

• Web-based E2E communication • Automatic invoicing and dispatch • Advanced credit analytics • Predefined remittance advice format • Cash flow forecasting

General Accounting

% of billing rework

Business metrics

Improvement levers

• Integrated dispute and communication tools • Dynamic discounting – early payment incentives

• Standard corporate reporting calendar • Reduction of general ledger accounts • Use of identical chart of accounts

Days to close month end

• Customer portal with dashboard capabilities • Electronic sales order management • Shared service center model • Cloud-based technology for invoices • Auto cash algorithms • Fraud prevention and payment trend tracking • Collection strategy engine • Dunning letter-based follow-up for aged debts • Digitize the documents to convert to electronic invoices • Automated OCR integration • Initiate e-invoicing platform to move invoices to touchless

• Automated JE postings • Auto reconciliation from SL to GL • Standard financial reporting templates • Reduction in total JE • Automation through Excel-based reconciliations

Customer invoices per FTE per month

Reconciliation error

• Auto set-up of fixed assets • Auto feed from subsystems to GL

• Web-based global calendar with clear accountability • Automated reconciliation with exception reporting • Use of standard JE list for month-end closing • Standard ERP module workflow (for inter co.) • Fixed asset management application • Treshold-based JE approval mechanism • Active schedule tracking and dashboarding • Automated financial reporting integrated with ERP • Chart of accounts rationalization • Tracking and tractability of open item reconciliation • Robust JE work flow tool • On-demand reporting platform • Centralized ERP inter-company module

Reconciliation cycle time

Manual invoice reduction

Journal entry automation


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