Simplify Integration of Processes

A wide range of manuals for entire company all from a single source save time integrating procedures needed.

Speed Policy Development

Standard usability formats, process design methodology and numerous examples for every department reduces employee confusion and improves usability speeding up policy development by less experienced personnel.

Ease Document Editing Tasks

Common MS-Word features provide faster editing, easier changes and simpler document updates to such things as table of contents compared to RTF, PDF or hardcopy formats.

Get Quick Answers to Procedures Questions

Companies can be prepared with answers to policy and procedures questions. They can use table-of-contents, keyword index feature, or provided hardcopy manual to get fast searchable answers to their process questions.

Many might not be very excited about spending hundreds of man hours on your procedures project, and they don't have to. Instead, they can save time for themselves and for their business.

An Example

Let's assume you buy on trade credit from your supplier and an account payable is created. Your supplier wants full payment in 30 days, however, you are selling inventory very fast, sell inventory a week later and are asking for full payment from your buyer in 7 days. You are now managing your conversion cycle. Consider, on day 1 you generate an accounts payable for 30 days from now. On day 7 you sell inventory and generate an accounts receivable, which your buyer will pay for in 7 days. What is your conversion cycle in case? -14 days, pretty good and you congratulate yourself. On day 15, after you receive payment, you are flush with cash and have a choice of reinvesting money or paying your supplier. What action you take will probably depend on a lot of factors, but as your supplier has provided you interest free cash for another 2 weeks, you may want to use it for those two weeks to generate greater returns; maybe you have outstanding credit you can pay down, you can buy additional inventory, or you may just want to generate interest returns.

Now consider that you also provide your buyers 30 days to pay you. On day 1 you generate an accounts payable for 30 days from now. On day 7 you sell inventory and generate an accounts receivable, which your buyer will pay for in 30 days. What is your conversion cycle in case? 7 days, not as good. You now have 7 days in your cycle during which you have repaid your supplier but will not receive payment for another 7 days from your buyer. You either need extra cash on hand or a credit line to support you for those 7 days.

What does this mean in terms of cash flow and your bottom line? If you have $1 million in annual sales and your receivables are outstanding an average of 60 days, that means you have $164,383 in outstanding receivables. Everyday extra day receivables are outstanding (e.g. 61 days vs. 60 days) represents an extra $2,740 that is not available to use elsewhere. If you need a credit line to support your receivables and you pay interest at 8% that represents $13,000 in annual interest charges (expenses) based on an average loan balance of $164,000.

So, as you can see, management of conversion cycle can have a large impact on business's cash flow and profitability. The management of your cash conversion cycle could determine whether you require a lending facility or not, or whether you can meet financial obligations.