Adopting An Accounts Receivable Cash APplication Solution As An Order To Cash System
Accounts Receivable Cash Application Software
It is important to conduct comprehensive review of your organizations current accounts receivable processes and the potential areas of improvement. Take the time to evaluate existing resources, technology, and procedures, and identify any risks or challenges that must be addressed. Make sure to consult with any stakeholders throughout this process and establish clear definition of the cash application goals for the system.
Step 2: Establish Technology BenchmarksEnsure that the new accounts receivable cash application solution addresses the organizations needs. Search for system that not only covers the necessary technology requirements, but also the metrics. Additionally, the system must support scalability for future growth.
Step 3: Create Data ModelOnce the technology benchmarks have been established, the next step is to develop data model that adheres to the brand’s data protocols. As part of this process, ensure that the data fields required to help drive successful cash application are established.
Step 4: Design the WorkflowsThe order-to-cash cycle typically involves complex set of tasks and activities that must be completed to accurately reflect cash coming into the business. The data model created in Step will provide the parameters by which the workflows should be designed. It is helpful to designate one but no more than two individuals to oversee the process.
Step 5: Configure System SettingsOnce the configuration phase is complete, then the technical setup and customization can be made. This involves configuring system settings, establishing integration?for example, with cash management systems, as well as loading any relevant data.
Step 6: Finalize the SystemBefore the system can be live, test the workflows and conduct comprehensive review of the system. This usually requires revisiting the steps of the setup and accounts receivable cash application process. The tests should run using dummy data as well as real-world scenarios that can provide insights into how the system will operate under specific conditions.
Step 7: Launch The SystemOnce the system is tested and all the procedures are finalized, then it is time to launch the system. Finalize any necessary operational changes and set up communication between the system and the data source.
Step 8: Monitor Performance and Make AdjustmentsAccounts receivable cash application solutions are only effective if the solutions are monitored continuously and adjustments are made when needed. Make sure to evaluate performance indicators and implement training as necessary.
Conclusion
A well-executed accounts receivable cash application solution not only streamlines order-to-cash operations but also provides executives with clear insight into their organizations working capital position. With the right system in place, finance teams can experience reduced costs and increased efficiencies, gaining more ownership over their accounts receivable decision process. Adopting the right system is critical step that cannot be overlooked.
