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Order-to-Cash (OTC or O2C)

What is Order-to-Cash (OTC or O2C)?

Order-to-cash (OTC or O2C) is the end-to-end process from receiving a customer order to collecting payment. It includes order management, invoicing, payment processing and accounts receivable. Efficient O2C processes enhance customer satisfaction, improve cash flow and reduce the risk of errors and disputes.

Optimizing the order-to-cash cycle is often one of the last items on a company's go-to-market checklist. However, OTC problems tend to be among the first encountered as a company scales. These issues can hinder growth and profitability.

To properly refine and optimize the order-to-cash process, businesses can leverage an Order-to-Cash Maturity Model. This framework helps assess a company's current O2C maturity level and provides a roadmap for improvement without excessive costs.

Related terms

Cash Flow from Investments
Cash flow from investments can be used to understand the money your business has earned from or spent on real estate, stock and other investment opportunities.
Cash Flow from Operations
Cash flow from operations measures the money a business generates from day-to-day activities, usually over a quarter or fiscal year.
Consolidated Invoicing
Consolidated invoicing, also known as centralized billing or grouped invoicing, is a billing process in which multiple transactions or charges incurred over a specified period are combined into a single invoice for payment.
Contract Management
Contract management is the process of managing the creation, execution, and administration of contracts between parties, such as businesses, organizations, or individuals.
Credit Card Processing
Credit card processing refers to the procedures and systems involved in securely authorizing and completing electronic payments made using credit cards.
Credit Card Reconciliation
Credit card reconciliation is the process of comparing transactions recorded in a company's accounting records with those listed on credit card statements to ensure accuracy and completeness.