Couchbase Cuts DSO 10 Days, Doubles Collections in a Year with Tesorio
Couchbase is the creator and maintainer of a powerful NoSQL database that helps deliver ever-richer and ever more personalized customer and employee experiences on any device, anywhere. Based in Silicon Valley, Couchbase counts dozens of Fortune 500 companies as customers, including AT&T, Verizon, Wells Fargo, Comcast and United Airlines.
Couchbase was growing sales and revenues quickly. Company CFO Greg Henry, however, believed Couchbase could significantly improve its cash flow and sustainable growth rate by improving collections and cash flow forecasting. This would help Couchbase use working capital more efficiently. “I knew we needed to get better,” says Henry. “We were linearly scaling our collections team with business growth.”
Henry also lacked cash flow insights. “The ERP did its job but we needed better insights and better analysis without bringing in more human resources,” says Henry. Manual cash flow forecasts via spreadsheets required 10 days for his team to complete. This lack of timely insights diminished Henry’s decision-making ability. “Because we didn’t know where we were on cash, we couldn’t make decisions fast enough. If collections were delayed, I needed the information right away to make adjustments to deliver on a cash number,” says Henry. And his team had no way to easily communicate collections status to other teams or to automate tedious collections processes like dunning.
To summarize, Couchbase wanted to:
- Improve collections efficiency without boosting headcount
- Improve DSO/DPO ratio
- Receive timely insights into cash flow events
- Build cash flow forecasts faster