Optimizing The Cash Cycle Through Order-To-Cash Software
ACCOUNTS RECEIVABLE COLLECTIONS AUTOMATION
The order-to-cash (OTC) process is the lifeblood of any business, whether it deals with products or services. Although OTC operational performance has traditionally been measured in terms of the traditional net operating cycle (NOC) the amount of time required for sale to be completed through the production of finished good the introduction of software has dramatically altered the scope of OTC performance.
Modern OTC software solutions are designed to optimize accounts receivable processes, streamline payment processing, increase customer satisfaction and reduce operational costs. By leveraging the capabilities of OTC software applications, business owners can improve their operational performance, increase their efficiency and gain more control over the cash cycle.
When seeking to increase operational performance with OTC software, businesses should consider the end-to-end process, including customer invoicing, collections, accounts payable and receipt processing. Automating invoice creation, authorizing incoming payments and recording customer payments can all simplify the process and reduce manual data entry and reconciliation. Automating collections also reduces the need for manual follow-ups, boosts customer satisfaction and ensures timely payments.
In addition to automating the OTC process, businesses should also look for applications that integrate well with their financial accounting software. By integrating their OTC software with the accounting system, business owners are able to truly optimize their end-to-end order-to-cash process and improve customer service. Integrating the OTC software with other systems also enable business owners to monitor customer activity and access customer data in real-time.
businesses should also consider applications that tailor the customer experience. For example, some applications allow customers to view account information, refer to historical transactions and access payment options. Other applications also give customers the ability to make corrections to invoices and notify customers of payments that are due.
By leveraging OTC software, businesses can significantly reduce payment errors, simplify the reconciliation process, reduce operational costs and improve customer service. OTC solutions provide businesses with comprehensive and integrated environment to quickly capture payments and streamline the cash cycle. With the right software in place, businesses can take control of their order-to-cash process, improve operational performance and succeed in todays competitive market.
