Cash Flow Automation: Risks In An Order To Cash Cycle
Cash Flow Automation
Neglecting to implement an automated cash flow platform comes with significant risks. Companies that elect to avoid Softwaresolutions and remain on manual systems may not be aware of the cost of inefficiencies within their order to cash cycle. Highlighted below are several concerns associated with manual approach to the order-to-cash process.
Accuracy
Manual cash flow systems are open to data error. The likelihood of this is increased when companies are dealing with numerous transactions and must enter significant amounts of manual data points. Inaccurate information can, further, lead to wasteful resources, such as double payments, incorrect taxes, and host of missed opportunities due to untimely payments. This can lead to non-compliance and stiff penalties from various regulatory agencies.
Data Security
The order to cash process is complex, often involves external partners, and involves highly sensitive data. Manual processes, however, increase the risk of data breaches and cybercrime. Financial system weaknesses through manual cash flow practices can create additional exposure for organizations and create compliance-related issues, further impacting the capacity to maintain steady cash flow.
Efficiency
Finally, manual order-to-cash systems lack the speed and scalability of automation. Automation allows organizations to efficiently collect and synchronize data, thus simplifying the payment capturing process while eliminating costly and time-consuming double work. Companies can, moreover, identify areas to reduce cost, use faster payment sources, and accelerate the collection process. This contributes to increased cash flow and provision of greater visibility at each point throughout the process.
In sum, manual cash flow systems are fraught with risks that may impede an organizations financial success. Recognizing the cost and inefficiencies associated with manual order-to-cash processes, Finance Executives should consider Softwaresolution that can streamline the entire process, confer greater accuracy and data security, and provide the capability to scale for increased efficiency.
