Increasing EBITDA: 4 Strategic Levers for the Modern CFO

In a world where increasing EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) usually means cuts, hiring freezes and supplier reviews, the most astute CFOs are recalibrating their strategy. Instead of focusing on doing more with less, it’s about understanding where you’re losing margin and intervening before it impacts the balance sheet.

EBITDA is lost not in the big numbers, but in the invisible details: slow approvals, siloed customer service, out-of-control DSOs, untracked requests. Today, only 39% of companies have complete visibility into their spend,1 while 62% report difficulty integrating key systems and processes.2

In other words, margins do exist if you know where to look. In this article, we’ll explore four powerful levers the Office of the CFO can pull to increase EBITDA — no drastic cost cutting required.

What is EBITDA?

EBITDA stands for earnings before interest, taxes, depreciation and amortization. It’s a commonly used metric for measuring a company’s financial performance and benchmarking against competitors. Although EDITDA is not recognized under generally accepted accounting principles (GAAP), many companies choose to include it in their earnings reports anyway.

How to calculate EBITDA

The formula to calculate earnings before interest and taxes is:

EBITDA = Net Income + Taxes + Interest Expense + Depreciation + Amortization

Why does EBITDA matter?

EBITDA is a useful measure of overall cash income, giving a quick look at your company’s financial health. It shows the true profitability of your business operations without the impact of financing and accounting decisions, making it easier to compare yourself to competitors regardless of differences in debt levels or tax rates. Basically, it’s a more accurate view of your company’s base profitability. 

Actionable ways to increase EBITDA in your business

1. Reduce average supplier cycle time

Automate accounts payable to better control spending & improve DPO

When EBITDA is under pressure, managing spend is crucial. The often overlooked accounts payable (AP) cycle is actually one of the areas where the most margin is lost due to payment delays, fragmented approval processes and manual errors. According to Ernst & Young, less than 40% of companies have an end-to-end view of their spend.1 As a result, decisions are made in the dark, with direct negative impacts on cashflow and the ability to negotiate with suppliers.

Reducing the average supplier cycle time doesn't just mean paying faster. It means paying better, at the right time and with reliable data. It means being able to analyze in real time where expenses are going, where bottlenecks are developing and where there are opportunities for optimization.

You can reduce average supplier cycle time by:

• Automating 3-way matching with AI algorithms that manage exceptions and validations autonomously
• Digitizing and customizing approval flows by amount, product category or location
• Using predictive analytics to monitor deadlines, days payable outstanding (DPO) and financial reporting impacts

Esker, recognized as a Leader in the first Gartner ® Magic Quadrant™ 2025 for Accounts Payable Applications, enables the CFO to transform AP from a cost center to a control center with a direct impact on:

• Expense visibility
• Working capital optimization
• Improving supplier rating and negotiated terms

For a modern CFO, controlling spend is the first line of defense for protecting operating margin.

2. Accelerate the cash conversion cycle & reduce DSO

Streamline customer service to free up cash & increase customer satisfaction

A growing EBITDA is often the result of a smoothly operating revenue cycle. However, many companies still suffer from avoidable bottlenecks such as customer inquiries lost in emails, errors in shipping documents or disputed invoices that block collections. All of this translates into uncontrolled days sales outstanding (DSO), slowed income and tied up working capital.

According to KPMG, companies that invest in intelligent customer service automation see a 12% increase in on-time collections and an 18% reduction in invoice disputes.3 For the CFO, this means greater financial predictability and fewer surprises at the end of the month.

Three strategic ways to reduce DSO:

• Centralize customer requests (PO, POD, invoice copy, complaints) in a single portal with automatic management via AI
• Use intelligent recognition of incoming documents (orders, contracts, returns) to speed up order-to-cash processes
• Integrate your customer service platform with your ERP and CRM systems to avoid duplication and ensure consistency throughout all processes

With the Esker Customer Service platform, the CFO can transform every customer interaction into a cashflow lever, improving:

• The efficiency of the front-office team
• Collaboration between Finance, Logistics and Sales teams
• Customer experience, often compromised by silos and slow response times

Faster revenue cycle = less tied up working capital = more real EBITDA.

3. Orchestrate real-time visibility & decisions

Leverage integrated financial data for proactive & strategic margin control

No CFO can improve EBITDA if they only see part of the problem. It’s not about having more data, but having the data you need to be able to act before something impacts the P&L. According to KPMG, only 27% of CFOs have access to integrated, real-time financial data.3 This means that decisions about discounts, pricing, inventory management or cashflow are often made on a historical basis, rather than a predictive one.

To break free from this reactive mindset, a profound shift is needed. Orchestrating all cashflow actions — purchases, sales, approvals, payments, etc. — in a single platform ensures all the data needed for intelligent decision making is accessible and actionable thanks to:

• Centralized dashboards that cross-reference data from multiple systems (ERP, CRM, BI) to provide real-time financial and operational insights
• Automatic alerts about anomalies (delays, inconsistencies, margins below threshold) for timely interventions
• AI algorithms that support decisions on cash allocation, credit scoring and intervention priorities

4. Make risk predictable

Anticipate problems & protect margins with AI-powered credit management

Every dollar lost due to a bad debt or late payment is EBITDA gone. But many companies still evaluate customers based on incomplete or outdated information, acting too late when the situation is already compromised. 

• Predictive credit scoring models, based on internal data (DSO, customer behavior) and external sources (credit bureau, news, industry)
• Real-time customer segmentation to customize follow-up strategies and payment terms
• Automated reminders with messages calibrated by urgency, language and preferred channel

Esker integrates these capabilities into its Accounts Receivable suite, providing the Office of the CFO with a comprehensive dashboard of active working capital. The goal is not to recover later, but to:

• Intervene before a customer becomes problematic
• Support the business relationship without compromising liquidity
• Protect the quality of assets

In uncertain times, predictability is more valuable than speed. 

EBITDA & beyond: A shift in mentality

Automate not just to cut costs, but to unlock value for your organization

Optimizing EBITDA isn't just about reducing operating costs. It means rethinking how finance, procurement and customer service functions collaborate to generate tangible and sustainable value. Companies that adopt integrated automation platforms not only improve their bottom lines, but also become more resilient, attractive to talent and prepared for ESG impacts.

For CFOs, this means a shift in position:

• From cost controller to business transformation leader
• From defender of the margin to architect of growth
• From manager of the present to strategist of the future

Today, EBITDA is just one measure of a company’s profitability. But the ability to build it intelligently, with digital and cross-functional processes, is what separates companies that survive from those that thrive.

It's time to act. Automating is no longer a technical option — it's a strategic choice. 

Why Esker for AI-driven automation in your finance department?

Esker’s integrated Source-to-Pay and Order-to-Cash automation software uses Agentic AI to help the Office of the CFO optimize working capital, improve decision-making and achieve better business outcomes. 

With Esker, organizations gain:

• AI-powered insights to forecast payments, prioritize actions and detect risk
• Global compliance and scalability with support for 130+ languages and multi-entity rollouts
• Faster onboarding and credit decisions through real-time data integration

Ready to automate? Get a free demo to learn more about Esker’s automation solutions for the Office of the CFO. 

Sources

1. How AI is transforming FP&A, Ernst & Young, 2025.
2. Global Intelligent Automation Survey: Automation with Intelligence – 7th Edition, Deloitte, October 2022.
3. AI in Finance – Survey Report, KPMG, December 2024.