Definition

Order to Cash or O2C or OTC is the business process that covers the entire scope of an order processing system from start to finish. It covers the entire process right from receiving the order to payment and final entry in accounting systems.

Example

Businesses that have high-volume sales must focus on their O2C process. This is because the entire process can have many moving parts and several dependencies. For instance, businesses may await payment from customers. In the case of late payments, businesses have to deal with less working capital which can have a negative impact on vendor payments, payroll management, etc. All of these can further impact the O2C process and aggravate the issue.

Why it matters

Order to cash cycle is an important aspect for companies since it gives insights into how business functions. It impacts business revenues, customer interactions, retention rates, and also business growth.

Get Started

Ready to see Vareto in action?

Give your finance team the tools they deserve so your company can make better, faster operational decisions.

Request a demo