The Cash Flow Blind Spot
A services company invoiced clients monthly, but payments often came 45–60 days late. The finance director could not forecast cash needs accurately, leading to missed payroll once and expensive overdraft fees. Credit control was reactive – only chasing customers after the due date.
How ERPNext Brought Cash Flow Visibility
ERPNext’s accounts receivable module automatically sends aging reports and dunning emails. The system links each invoice to the underlying sales order and project, so the team sees exactly what is unpaid and why. Cash flow forecasting uses open invoices and historical payment patterns to predict future balances.
- Original problem: DSO was 58 days; cash flow forecasting was ±30% inaccurate.
- ERPNext solution: Automated reminders, payment scheduling, and real‑time cash flow dashboards.
- Improved result: DSO dropped to 32 days; forecasting accuracy improved to ±5%. The company avoided $50,000 in annual bank charges.
Managers can now see projected cash shortfalls two weeks ahead and negotiate better payment terms with key clients, all from the ERPNext dashboard.