Your quote-to-cash (Q2C) process is the plumbing that connects deal commitment to cash in the bank. When the plumbing leaks, you do not see a flood — you see slow drips: delayed invoices, aging receivables, disputed amounts, and cash flow that never quite matches the bookings number.
This audit walks through every stage of the Q2C lifecycle. For each stage, assess whether the process element is in place, partially in place, or missing. Any item marked "missing" is a leak. Any section with three or more items marked "partial" or "missing" is a stage that needs redesign, not patching.
Section 1: Lead Capture and Qualification
- There is a defined process for capturing new leads into the CRM with consistent data fields (source, contact info, company, estimated value).
- Qualification criteria are documented and used consistently to determine which leads become opportunities.
- Leads that do not qualify are dispositioned with a reason — not left in limbo.
- The handoff from marketing to sales is triggered by a defined event, not an informal request.
- Lead response time is measured, and there is a target Service Level Agreement (SLA) for first contact.
Section 2: Discovery and Scoping
- Every opportunity has documented buyer needs, decision criteria, and success metrics before advancing past discovery.
- Scope is defined in writing and agreed upon by the buyer before a proposal is created.
- The discovery process captures information required downstream — billing contact, procurement process, PO requirements, budget authority.
- There is a standard set of discovery questions or a framework that the team follows consistently.
Section 3: Proposal and Pricing
- Proposals are generated from templates with standard structure, branding, and pricing tables.
- Pricing is pulled from an approved price book or pricing tool — not calculated ad hoc by the rep.
- Average time from scope agreement to proposal delivery is tracked and meets a defined SLA.
- Proposals include all terms the buyer needs to make a decision: scope, pricing, timeline, payment terms, and assumptions.
- There is a version control process so the buyer and seller are always working from the same document.
Section 4: Pricing Approval and Discounting
- There is a defined approval workflow for deals that deviate from standard pricing (discounts, custom terms, extended payments).
- Approval thresholds are documented — reps know what they can approve and what requires escalation.
- The approval process has a defined SLA (e.g., 24-hour turnaround for discount requests under 15%).
- Approved discounts are recorded in the CRM and flow through to invoicing automatically.
- Discount frequency and depth are tracked by rep, segment, and deal size for trend analysis.
Section 5: Contract Execution
- A standard contract template exists and is used for the majority of deals without heavy customization.
- Legal review is triaged by deal value or risk level — not every contract gets the same level of review.
- Contract status is tracked in a system (CRM, CLM, or shared tracker) with visibility for sales and legal.
- Average time from proposal acceptance to executed contract is measured and reviewed.
- There is a defined escalation path when contract review exceeds the target turnaround time.
Section 6: Invoicing
- Invoice generation is triggered automatically (or by a defined process) when a contract is executed.
- All data required for a correct invoice — amount, billing contact, PO number, payment terms, tax jurisdiction — is captured before the deal closes.
- Time from contract execution to invoice delivery is tracked, with a target SLA of 48 hours or less.
- Invoice accuracy rate is measured — the percentage of invoices sent without errors requiring correction.
- Invoice disputes are tracked with root-cause categorization (wrong amount, wrong contact, missing PO, incorrect terms).
Section 7: Collections
- There is a defined collections cadence — automated reminders at set intervals before and after payment due date.
- Aged receivables are reviewed weekly with a defined owner responsible for follow-up.
- Escalation triggers are defined: after N days overdue, the account is escalated to a manager or senior contact.
- Payment status is visible in the CRM or a shared system so sales and account management have context.
- Write-off criteria are documented — the conditions under which an outstanding receivable is written off, and who approves it.
Section 8: Revenue Recognition
- Revenue recognition rules are documented and aligned with applicable accounting standards (ASC 606, IFRS 15, or equivalent).
- The system of record for revenue recognition is defined and reconciled monthly with the CRM and billing system.
- For subscription or recurring revenue, recognition is tied to the service period — not the invoice date or cash receipt.
- For milestone-based revenue, delivery milestones are tracked in a system that finance can access directly.
- Deferred revenue is tracked and reported accurately in financial statements.
Scoring and Interpretation
Count the items you marked as "in place," "partial," and "missing" for each section.
| Section | In Place | Partial | Missing |
|---|
| Lead Capture | | | |
| Discovery | | | |
| Proposal | | | |
| Pricing Approval | | | |
| Contract | | | |
| Invoicing | | | |
| Collections | | | |
| Recognition | | | |
Sections with 0-1 items missing: Solid. Look for optimization opportunities, not redesign.
Sections with 2-3 items missing: Gaps exist. Prioritize the items that affect cash velocity — anything that delays invoicing or collection.
Sections with 4+ items missing: This stage is a structural weakness. Revenue is leaking here, and patching individual items will not fix it. The stage needs a full process redesign with defined ownership, system triggers, and data requirements.
What to do next
This audit shows you where the leaks are. The next step is quantifying their impact and building the remediation plan.
If you found multiple stages with significant gaps, a focused advisory session will walk through each finding, estimate the revenue and cash flow impact, and build a prioritized fix sequence — starting with the changes that affect cash velocity first.
Book an advisory session to review your Q2C audit →