Cashless Onboarding: The Risks Of Neglecting Order-To-Cash Software
Cash Collection From Customers
In the modern era of digitally-enabled advanced analytics, most business have benefitted from incorporating software-based solutions into their revenue cycle process. As technology continues to play larger role in day-to-day business operations, many firms are faced with the challenge of adopting advanced order-to-cash software technology to keep up with the latest innovations in the market. Without such advanced software, finance executives may be overlooking the critical risks of not using software for cash collection from customers.
The primary threat for organizations that forgo software-based cash collection and continue to do things manually is the risk of cash leakage. With manual processes, cash collection and accounts receivable reconciliation can be labor-intensive. The lack of automation may inadvertently lead to errors and discrepancies between what is expected and what has been accounted for. In most cases, cash related errors are either identified late, due to lack of timely communication with customers, or not identified at all. As such, the overpayment of claims and misallocation of funds due to an inaccurate accounts receivable process can be counted among the biggest costs associated with the neglect of proper Softwaresolutions.
Accounts receivable reconciliation can also take considerable amount of time and effort across departments. By collecting and entering data manually, it becomes difficult to accurately update customers? accounts receivable reconciliation and ensure it is consolidated into single version of the truth. This leaves room for duplication errors and lack of trust in the accuracy of reports. Investing in automation software reduces the need for manual effort and increases the speed and accuracy of accounts receivable reconciliation.
Moreover, manual system for cash collection can become vulnerable to certain external and internal frauds, as well as data breaches. With all information collected in silos from different team, not only is the risk of multiple entry errors caused by manual data entry heightened, but there exists greater risk of exposure to the confidential data of customers and employee This can manifest itself in any number of forms, from identity theft to direct hacking attempts on the system. In these cases, software-driven cash management system is essential.
Technological advancements have allowed for the integration of advanced tools, such as cognitive data capture, image and text processing, robotic automation, and analytics dashboard for cash collection. These tools enable business to automate most of their processes to reduce the burden on personnel. In addition, software-driven systems provide unified view of accounts receivable across the enterprise, complete with integrated dashboards to enable the C-suite greater visibility into the companies overall performance.
When considering the expensive costs associated with cash leakage, frauds, and manual entry errors, installing order-to-cash software will prove to be long-term better choice for any business. The risks associated with relying solely on manual systems are high and as such, finance executives would do well to consider an investment in automated software. Doing so will not only save time, effort and money, but also reduce risks and enable greater clarity into the order-to-cash process.
