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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

Order-to-Cash (OTC or O2C)
Order-to-Cash (OTC), also sometimes referred to as Order-to-Cash Cycle (O2C), is a crucial business process encompassing all the activities involved in processing a customer order and collecting payment. It essentially tracks the journey a sale takes, from the initial moment a customer expresses interest to when the company receives the final payment.
Profit and loss (P&L) statement
A P&L, also known as a profit and loss statement or income statement, is a financial document that summarizes a company's revenue and expenses over a specific period, typically a month, quarter, or year. It shows how effectively a business is converting its sales into profits.
Revenue Recognition
Revenue recognition is an accounting principle that governs when and how a company recognizes revenue from its sales transactions.
Stripe NetSuite Integration
Yes, you can integrate Stripe with NetSuite via an app like ZonePayments, which allows you to collect customer payments and reconcile deposits directly within NetSuite while maintaining control and compliance. 
Total Available Liquidity
Total available liquidity includes 100% of the cash and cash equivalents a business has on hand. It may also include a company’s borrowing capacity.
Working Capital Ratio
Working capital ratio (WCR) helps businesses assess their ability to pay current liabilities. More specifically, this liquidity metric determines how many times a company’s current assets can offset these liabilities.