Delivering Value From An Order To Cash Workflow: A Guide For The Executive
Accounts Receivable Workflow
The accounting and accounts receivable (AR) process is critical component of any business that deals with customers. An order to cash solution provides streamlined workflow with specific tools to maximize efficiency and minimize errors. This guide will promptly explore the workflow and provide helpful understanding of how to implement an order to cash solution to deliver value in accounts receivable.
When evaluating any accounts receivable process, understanding the workflow is essential. The order to cash process is made up of five distinct steps. The first step is to capture the invoice, by either manually inputting the information or digitizing the invoice for automated processing. Then, the invoices must be validated, both for accuracy and for compliance rules. The third step involves managing the payment process, where AR staff can assign payment schedules and compile customer payment plans. To ensure timely payments, the fourth step includes collection efforts, such as automated dunning emails and the ability to interact with all remittance sources. The fifth and final step is monitoring and reporting, which involves tracking payments and reporting any activity for auditing and compliance needs.
Now that the workflow is defined, it is time to evaluate ways to optimize the process with an order to cash solution. The first way to do this is to build platform optimized for automation of the accounts receivable process, tailored to meet the specific needs of the business. For starters, the platform should allow users to manage, validate, and process invoices with ease. Once an invoice is entered, the platform should be able to apply all necessary calculations and then immediately generate an invoice. This ensures accuracy of information and reduces time spent verifying invoices.
The platform should also integrate all remittance sources into single dashboard, making it easy to collect payments faster. Automation tools can help to reduce manual entry errors and speed up payments. For example, automated dunning emails can be scheduled in advance, providing clear payment instructions and providing the ability to track responses. In addition, integrated payment portals allow customers to submit payments without manual intervention. This lowers processing costs and creates desirable customer experience.
Finally, dashboard reporting should be offered to identify patterns and capture key performance indicators. The platform should have the ability to present all the necessary information in an easy-to-digest format, allowing executives to monitor various trends and identify areas of improvement. Reports should be highly customizable and also provide detailed analysis of invoices.
By utilizing an order to cash solution, organizations can gain significant increase in efficiency and accuracy in their accounts receivable process. The key here is to find the right platform and customize it to meet their needs. The workflow should be tailored to their distinct business model, and all automation tools should be used to their fullest potential. With well-designed solution, companies can effectively reduce errors, reduce payment cycles, and yield greater insights into their overall financial performance.
