How Sterling’s Cash Flow Optimisation Cut DSO by 30%
Our client, a mid-sized business operating in a competitive industry, initially approached us with three key objectives:
- Cash Flow Optimisation and Debt Management
- Automation of the Invoicing Process
- Maintenance of Daily Finance Back-Office Operations
Their existing processes were manual, error-prone, and lacked the agility required to support their growth and financial clarity. Therefore, Sterling’s challenge was to implement tailored solutions that strengthened credit control, addressed these operational pain points, and at the same time ensured minimal disruption.
Optimising Credit Management and Finance Operations
We introduced regular customer credit checks to flag high-risk accounts at an early stage. This allowed Sterling’s credit control team to take timely action, reducing the risk of overdue payments and bad debt.
Our approach focused on personalised, early communication with customers. This included:
- Courtesy calls to ensure invoice receipt and payment within terms
- Scheduled follow-up calls supported by email for both upcoming and overdue invoices
- A strong emphasis on relationship-building, which facilitates collection efforts
We implemented an invoicing solution that seamlessly integrated with the client’s existing accounting and stock systems. With key benefits being:
- Automated invoice generation
- Reduction of human errors
- Faster invoice delivery
- Better invoice tracking and reporting
By incorporating electronic invoices with embedded payment links, we enabled:
- Quicker payments from customers
- A smoother payment allocation process
- Improved visibility on outstanding balances
The finance team adopted a daily bank statement review process, ensuring:
- Immediate identification of anomalies or disputes
- Swift resolution of any payment discrepancies
- Real-time financial reporting
Cash Flow and Credit Management Outcomes
Significant DSO Reduction and Improved Liquidity
Through a combination of targeted credit management strategies and the automation of key finance processes, the company achieved a 30% reduction in Days Sales Outstanding (DSO). As a result, cash inflows accelerated significantly, improving overall liquidity. Furthermore, this enhanced the client’s cash flow position and reduced reliance on credit lines while also fostering stronger alignment between finance, sales, and operations teams.
In parallel, by replacing manual invoice creation with automated workflows, the business saw a marked decrease in billing disputes and invoice corrections. Consequently, the automation freed up valuable time for the finance team, enabling them to shift focus from administrative tasks to more strategic, value-driven activities.
Enhanced Communication and Transparent Processes Led to Higher Client Satisfaction
As a result of adopting a proactive and professional approach to credit management, the finance team built a stronger rapport with customers. In turn, this open and approachable style made customers more receptive to payment reminders and follow-ups, thereby improving the payment cycle and reducing friction in financial interactions.
Better Financial Visibility for Strategic Cash Flow Optimisation
Consequently, this enhanced visibility enabled more accurate cash flow forecasting and improved budgeting capabilities. Moreover, access to timely and reliable data also supported better strategic decision-making, thereby allowing the business to plan confidently for growth and navigate challenges with greater agility.
A Scalable Model for Financial Excellence
This case study demonstrates how cash flow optimisation, invoicing automation, and proactive credit management can significantly improve business performance. As a result, the client’s finance function is now more agile, automated, and aligned with their broader strategic goals.
If your business faces similar challenges, get in touch today to learn how our solutions can deliver lasting financial transformation.
