Financial Risk Of Not Using Accounts Receivable Software
Automated Accounts Receivable
An organizations finance department plays critical role in efficiently forecasting and managing its cash flow, ensuring that obligations are met within prescribed timeline and in cost-effective manner. Adopting software for accounts receivable serves as powerful tool to help finance professionals manage the administrative tasks associated with order to cash protocols.
Without an automated solution, manual accounts receivable processes such as the manual collection of payments and remittance advice can burden an organizations financial operations and create significant risk. For executives running an order to cash protocol, an unmanaged system can lead to inaccuracies in reporting, decreased visibility of accounts receivable data, and potentially negative impact on customer relations and cash flow.
Accounts receivable software can provide wide range of capabilities, such as automated reconciliation of customer payments and deductions, proactive tracking of customer payment cycles, and faster resolution of customer disputes. Such technologies allow organizations to perform multiple operations consistently and accurately, significantly reducing manual input of data and operational costs, and enhancing visibility into accounts receivable process.
One of the greatest benefits of an automated solution is faster period-close completion, freeing finance professionals from having to manually reconcile customer payments and deductions. Through cloud-based capabilities, an automated solution can provide deep, holistic insights into the end-to-end cash flow process. Such technology can support the analysis of historical and current accounts receivable performance metrics and create predictive analytics that allow executives to better manage aging and payment cycles for improved cash flow analysis.
Accounts receivable software can provide financial teams with the ability to self-audit and identify any compliance-related issues in the accounts receivable process. Automated systems can even streamline customer communications, providing customers with real-time updates on accounts receivable process, dispute resolution progress and general payment cycle management. This can help reduce customer disputes and payment cycles, further improving the organizations accounts receivable results.
In summary, financial executives should take into account the risks of not using an automated accounts receivable Softwaresolution. An unmanaged system can lead to delayed period-closes, inaccurate reporting, decreased visibility into the accounts receivable process and negative impact on customer relations. An automated solution, however, can streamline operations and provide end-to-end visibility into accounts receivable data, helping finance professionals to efficiently manage and forecast cash flow and customer payment cycles.
