An Executive Guide To Accounts Receivable Packages: Simplified And Streamlined Order To Cash Solutions
Accounts Receivable Software Packages
At the heart of every organization, from local start-ups to large corporations, lies the successful orderly execution of its operations. However, accounts receivable processes are often viewed with considerable trepidation, as the complexity of executing the order to cash process can be overwhelming.
But in todays competitive marketplace, where efficiency and customersatisfaction are paramount, streamlining the accounts receivable function is an absolute must. Fortunately, sophisticated Accounts Receivables Software packages have been developed to help executives manage their Order to Cash processes in an efficient and successful manner.
This guide will outline the advantages of using Account Receivable (AR) packages, provide an overview of the different categories available, and conclude with summary of the steps necessary to implement an AR package and successfully manage the Order to Cash solution throughout the organization.
Advantages of Accounts Receivable Software Packages
There are number of distinct benefits to be gained from utilizing an AR package for the Order to Cash process:
? Automation: With an AR package in place, many of the processes that were previously manual, costly, and time-consuming become automated, faster, and more efficient. This saves not just money, but also resources and time.
? Improved customer relations: With the automated management of invoices, customer accounts, and cash flows comes greater capacity for client satisfaction. Improved customer relations allow for better business decisions based on customer intelligence and feedback.
? Enhanced data accuracy: AR packages can reduce the errors associated with incorrect data entry and minimize the possibility of miscalculations or irregularities.
? Improved flexibility: With the heightened efficiency of AR packages, owners and management can devote greater attention to customerservice, marketing, and business analytics.
Types of Accounts Receivable Software Packages
The type of AR package you choose to address your Order to Cash needs will depend on the size, industry, and goals of your organization. Generally, one can select between stand-alone Accounts Receivables package, full ERP package that incorporates AR, or cloud-based or subscription service that provides Accounts Receivable content and analytics.
1. Stand-Alone Packages: Stand-alone AR packages offer an economical and straightforward option for managing the Accounts Receivable operations of an organization. However, these packages tend to lack in additional features, such as advanced customer data, billing systems, and more robust analytics.
2. Full ERP Package: An Enterprise Resource Planning (ERP) package affords the experience of an entire suite of features and functions from single vendor. These packages often include fully featured Accounts Receivables module. The downside here is cost, both in terms of purchase and installation.
3. Cloud and Subscription Services: Cloud-based or subscription services offer an affordable, immediate solution that can be customized to the needs of an organization. In addition, depending on the package, these services may offer greater flexibility and scalability options.
Implementing an AR Package
If you have decided on package, follow these steps to successfully implement your AR package and streamline the Order to Cash process:
1. Evaluate the scope and needs of your organization: An AR package requires substantial amount of data. First, create clear picture of the scope of the process you are trying to manage and the type of data you will be using.
2. Ensure accuracy of data and accounts: Ensure that all customer accounts, invoices, contracts, payments, and customer data are accurate. Any accounts with errors can cause issues with reconciling payments and tracking customer information.
3. Select the package that best meets your organizational needs: Once you have clear picture of the scope of your Order to Cash process, evaluate the different types of AR packages and select the one that best meets your needs.
4. Ensure that the package is compatible with existing systems and processes: Assure that the package you select is compatible with existing systems, processes, and any other accounting software packages. It is also important that the package can handle the size and volume of data your organization requires.
5. Train employee It is important that all employeeare trained on the use of the software and that they understand the data entry and process flow of the system.
6. Test the package: Before making the package public, it is important to test the package to ensure that all elements are functional, working correctly, and error-free.
7. Monitor and optimize: After the package is in place, continually monitor and optimize its use. The success of any AR package requires proper use, maintenance, and optimization.
Accounts receivable software packages offer an efficient and successful way to manage an organizations Order to Cash processes and improve customer relations. By utilizing this guide, finance executives can make well-informed decisions about which package to select and how to successfully implement it for optimum impact. With the right package in place, organizations can become more efficient and profitable, while delivering greater customersatisfaction.
