Procuring Software To Drive Operational Performance
FORECASTING AR COLLECTIONS
As order to cash processes become increasingly automated, the deployment of software is key to the success of the organization. Deploying the right system in timely manner delivers efficiency gains, improved accuracy and operational performance. It is essential that the software used is reliable and up to date.
An effective order to cash system can create gains in both accounts receivables and accounts payable. Our accounts receivables will benefit from system with better tracking options, enabling us to accurately forecast collections, speed up the process, and improve our visibility of payment times. Our accounts payable will benefit from increased visibility into our spending and supplier reconciliation processes. With the right system in place, we can enable our finance team to reduce the hours spent manually reconciling accounts and to accurately reconcile our supplier payments.
In order to gain operational performance from our software, we must first consider which areas need to be improved. It is important to have clear understanding of the function we desire from the system, as well as our current performance levels. We must also answer key questions, such as: How quickly do we need to be able to process transactions? How much accuracy do we require? How much visibility into our accounts do we need?
Having identified our needs, we can make an informed decision on which system to invest in. When examining order to cash software, there are several key criteria which should be considered. Most systems will offer functionalities including the following: accounts receivable forecasting, order tracking and invoicing, payment processing, and supplier reconciliation. Therefore, we must consider the accuracy, speed, and scalability of components, and analyze the impact of these components on our accounts. Additionally, we should consider the lifetime cost of the system, as well as its integration capabilities with existing systems.
To conclude, when selecting software with order to cash functions, it is essential that we have thorough understanding of our current performance levels, and the desired outcomes from the implementation of the system. Careful analysis and considered selection of the software needed allows us to realize the rewards of increased accuracy, speed, and visibility in our accounts.
