Automating invoice processes reduces Days Sales Outstanding (DSO), improving cash flow predictability. Learn how to navigate economic pressures with confidence, maintain resilience, and drive future growth.
Finance teams at small to midsize U.S. companies face distinct pressures in challenging economic times. Organizations of this size often operate within tighter margins and are heavily dependent on consistent cash flow to keep operations moving forward.
Inflation and its impact on Finance Teams
In recent years, inflation rates in the U.S. have reached heights not seen since the early 1980s, peaking at 9.1% in June 2022 and stabilizing around 3% in early 2025. A sustained period of elevated inflation results in significant price increases in many areas. Inflation drives up the cost of raw materials, distribution, payroll, and other operational expenses that directly impact profitability.
Aside from expenses, inflation complicates cash flow management. Businesses facing increased costs may experience delayed customer payments, as their clients also contend with tighter budgets. Invoicing delays lead to late payments, extended accounts receivable time frames, and prolonged order-to-cash cycles.
According to the National Federation of Independent Business (NFIB), 23% of executives surveyed reported inflation as their single most important operational concern.
Optimizing healthy cash flow management and DSO is key
Long payment periods increase Days Sales Outstanding (DSO). Recent industry studies indicate a 10% average increase in DSO across sectors, straining cash flow in many mid-sized organizations. In light of these conditions, managing liquidity amid rising DSO is a top priority for financial executives.
Accurate financial forecasting becomes even more crucial in combating the effects of inflation and making informed decisions. Finance professionals must continue to deliver sound data, financial analysis, and projections to keep their organizations afloat in the short and long term.
Process hundreds of invoices in minutes, accurately and securely
Traditional manual processes such as invoicing customers, tracking payments, and reconciling accounts become increasingly inadequate. Manual tasks are not only prone to errors but also lead to delays that exacerbate inflation-related challenges. Finance teams that spend a significant amount of time on manual transactions and performing repetitive tasks have less time to focus on strategic activities. Automation is key to improving efficiency and reducing workload.
Industry studies confirm automating invoice preparation and presentment can reduce DSO by an average of 25%.
Additionally, automation frees financial personnel to focus on budgeting, forecasting, and financial planning, rather than being bogged down with routine invoice preparation and tracking. Finance teams can dedicate time to analyzing economic trends, negotiating supplier terms, and adjusting pricing strategies to mitigate the adverse effects of inflation.
Gain real-time visibility and strategic advantages
According to Gartner, companies that effectively implement finance automation report a 30% reduction in errors and improved cash flow forecasting accuracy by up to 20%. Automating invoice processes also provides essential real-time visibility and reporting. Finance leaders gain immediate insights into payment status, customer behavior, and potential cash flow bottlenecks, empowering proactive financial management.
Leverage mailing automation to improve department efficiency
Automation tools can be easily integrated with existing accounting and financial systems, providing minimal disruption and a rapid return on investment (ROI). Finance teams can simplify, customize, and expedite business-critical mailings with just a few clicks without extensive downtime or training. A mailing automation platform can help:
Accelerate customer response and payment cycles.
Enable your business to send financial documents via multiple channels, such as print and digital, from multiple locations.
Improve the integrity and security of customer documents.
Reduce your operational inventory and production costs.
Investing in an automation strategy positions your team for success
Inflation highlights the need for agility, prompting finance teams to reassess their operational strategies. Automation is no longer optional—it is an essential component of sustainable management and long-term financial health. Explore how Quadient can help your team reduce DSO and boost financial agility.
To learn more, sign up for our upcoming live webinar on June 5th: Accelerating Cash Flow: Navigating payment challenges amidst economic uncertainty.