Optimizing The Accounts Receivable Process: Utilizing Order To Cash Solutions
GOALS FOR ACCOUNTS RECEIVABLE
Running an efficient and cost-effective accounts receivable process is always priority in any company. Implementing the right technology and software solutions can help streamline and reduce overhead costs. Utilizing order to cash solutions not only can reduce overhead but also improves customer experience and relationships–thereby driving more profits.
Assuming your company is in the market for an order to cash software solution, there are few steps to ensure that you get the best results from the implementation. This article will take you through the process from start to finish, from selecting the ideal solution to setting up the software, so you will be well-versed in the optimal method for utilizing an order to cash solution for your accounts receivable goals.
Step 1: Research the Market and Identify Requirements
The first step is basic research to get an understanding of the various options available in the market, as well as your companies goals, objectives and specific requirements. it is important to assess the current system and identify pain points or any integration needs. You will also need to spend some time deciding on the budget and the timeline of the project. This will serve as the basis of your research and help you to evaluate different order to cash solutions.
Step 2: Find Competent Vendors
The next step is to shortlist vendors for the order to cash solution. Make sure to look for vendors who specialize in delivery of order to cash solutions, who offer good support and provide satisfactory ROI (return on investment). Before finalizing vendor, check the extent of their integration capabilities, their governance models and the scalability of their solutions.
Step 3: Understand and Negotiate the Terms and Conditions
Once you have narrowed down couple of reliable vendors, the next step will be to understand the terms and conditions of the service. Comparing vendors and their terms should be based on the business requirements identified in Step 1. This will also be good time to negotiate the pricing and benchmark the cost-effectiveness of each solution.
Step 4: Set Up the Solution
Once vendor negotiation is complete and the contract is signed, the focus will shift to setting up the order to cash process. This will typically include working out the best way to configure the software and establishing the most efficient process. It is important to consider how the system will interact with other third-party applications, such as data monitoring and advanced analytics applications, for better results.
Step 5: Monitor and Test the Solution
At this point, the software can be tested in real-time environment to ensure that it is bug-free and working efficiently. it is important to define the criteria of successful implementation, which should include smooth and efficient completion of tasks, such as invoicing, collection, reconciliation and customer support. You should also be on the lookout for any enhancements that might benefit the process.
Step 6: Deploy the Solution
Once the testing and monitoring is complete and all the criteria for success have been met, the implementation can be deployed across the company. This is the get-go signal, which orders to cash solutions need to be available to all departments and to start doing their job.
Conclusion
An order to cash solution, once fully implemented, can help streamline and automate the accounts receivable process across departments and systems, significantly improving financial performance and reducing overhead costs. To ensure optimal performance and optimal results from your order to cash solution, follow the steps outlined above from researching the market to deploying the solution. Doing so will help you optimize the accounts receivables process and improve customer experience and relationships.
