For equipment dealers and companies that manage large service operations, service-to-cash cycles can be a headache. Indeed, the gap between when a technician is assigned a job to when accounting receives payment and recognises the revenue, can turn out to be one of the most stressful tasks, if it is prolonged. Why? Because it can put a squeeze on your cashflow and profits.
Aberdeen Group reports that the average service-to-cash cycle is 34 days, with best performers able to reduce this to around 26 days.