Time Analytics
Objectives and Key
Results for Finance
Department
Improvement in taxation process and tax rate
optimization
Maximal effective tax rate to be 15%
Implementation of internal controls and check lists
Maximal amount of fines by tax authority is $2.000
Improvement in Net working capital
All customers are checked from the credit potential point of view
Successful implementation automation of dunning letters with
follow ups
Zero deliveries to 15 days or more overdue customers
Implement special NWC reporting to be delivered to management
at 5th in a month for previous month
Decrease payment terms from 45 to 30 days
Use a proven order processing system (tool) to generate quick and
correct invoices;
AR overdue above 30 days to be maximum $30.000
Time Analytics
Objectives and Key
Resluts for Finance
Department
Improvement in account receivable management
Decrease days sales outstanding (DSO) from 56 to 30 days
Early payment discount implemented at the 5 most important
customers from collection point of view
All customers with expected annual sales lower than 2.000 to pay
in advance
Make sure that your customers receives the invoice on time;
50% of your small customers to pay by credit card or Direct Debit
Implement credit limit system, determine AR exposure limit for
each customer
Make sure that all customer above $50.000 exposure provide a bill
of exchange or other security
No verbally agreed payment terms
Time Analytics
Objectives and Key
Resluts for Finance
Department
Improvement in trade payables management
Increase days purchase outstanding (DPO) from 25 to 35 days
Zero payment done before due date
Have a standard Payment term for Non Trading Goods / Services;
set purchasing payment policy is at least 60 days payment term;
Make sure your payment terms are not worse than those of your
competitors;
For goods coming from remote locations make sure payment
terms start upon receipt of goods;
Improvement in inventory management
Decrease days sales inventory outstanding (DIO) from 45 to 30
days
Install continuous reduction program for obsolete goods and
returned goods;
Implement a good forecasting system to make good planning;
Time Analytics
Objectives and Key
Resluts for Finance
Department
Use payment terms in your negotiation.
Get a discount pries for early payment from 5 suppliers
Make payment terms above 60 at least 3 new suppliers
Use them strategically to arrange for discount for early payment
Avoid suspicious transactions
Implement and perform a policies about payments
Implementation of 4 eyes principle
Time Analytics
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Bojan Radojicic
Senior Partner in Tax & Finance Practice.
17+ years of experience in the profession.
Building Digital Solutions for Accounting, Tax
and Consulting Firms.
