Practical Order To Cash Solutions For Increasing Profitability
ACCOUNTS RECEIVABLE AND COLLECTION
Organizing, managing, and effectively collecting accounts receivable for profitable businesses is continuous challenge for many companies. However, with the help of order to cash (OTC) software, businesses can automate and streamline the accounts receivable process. OTC systems are effective solutions for tracking cash flow, extending credit, collections, and account reconciliation.
The value of an OTC system is often greatest when it is part of wider corporate financial system. Such systems can be integrated with the back-end financial ERP platforms and the front-end sales systems. For example, if the OTC system ties into the ERP, it can help to control accounts receivable and other financial reports.
Implementing an order to cash system can be both cost-effective and time-efficient. By streamlining the order to cash process, businesses can decrease their overhead costs while simultaneously accelerating their cash inflows. In addition, OTC systems can also provide essential analytics and reporting to business leaders, offering real-time snapshot of their accounts receivable situation.
For todays executives, selecting the right OTC solution is essential for improving cash flow visibility, collections, and the order to cash process. Here is step-by-step guide to selecting the right OTC software solution:
1. Profile the Business
The companies executives must first create thorough profile of the business and its current financial operations. This profile should document the current approaches to credit extension, collections, and accounts receivable reconciliation.
2. Research Solutions
Executives should then research the type of OTC solutions that are available for their corporate size and needs. There are countless solutions available on the market, some of which are tailored for mid-sized and growing businesses. Executives should read external reviews from consultants and customers to determine the OTC solution that is best suited for their business.
3. Compare Options
By comparing the features and pricing of viable solutions, executives can identify the OTC software solution that best matches their business profile. Solutions should be assessed on the accuracy, depth and breadth of the data, the speed of integration, the capabilities of the analytics and reporting system, and the compatibility with their existing back-end systems.
4. Test Solutions
Executives should then test the solutions they have selected with proof of concept (POC). During this process, they should monitor system flows and identify any issues that may affect their financial operations. Additionally, executives should make sure to test the employee experience with the various platforms to ensure its acceptance.
5. Execute Implementation Plan
Executives should create an implementation plan that details an actionable timeline, expected outcomes, and any associated risks. All stakeholders should be on-boarded onto the OTC platform during the onboarding process to ensure smooth transition. During this phase, executives should monitor the system performance and address any issues that arise.
6. Evaluate Future Needs
Last, executives should review their initial OTC system profile and adjust it to align with their updated financial operations. Executives should also identify any new needs that may require additional functionality and features for the OTC system.
Order to cash solutions are essential for transforming todays financial operations. The right OTC system can streamline accounts receivable, enhance credit and collection processes, and improve cash flow visibility. To select the right solution, executives should carefully analyze their operations and research available OTC options. After executing an implementation plan, they should periodically evaluate their OTC solution to ensure it continues to meet their current needs.
