Risk Of Not Using Credit And Collections Software
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Any business that wants to maintain healthy cashflow must prioritize the accurate tracking, recording and collection of invoices. From C-Suite perspective, the risk of not adequately managing the accounts receivable system, which includes the order-to-cash cycle, is simply too high. Without the use of reliable credit and collections software, finance executives are susceptible to the time consuming nature of manual processes, such as inaccurate calculations and potential miscalculations.
Despite the numerous benefits of utilizing credit and collections software system, chief financial officers are often inundated with plethora of responsibilities. As executors of financial and operational objectives, CFOs often face the burden of having to attend to the mundane operational tasks associated with invoicing, collections and payment processing. As such, the costs that flow from inaccurate and inefficient management of the accounts receivable system are overlooked.
An example of the costs associated with not utilizing credit and collections software is assuming too much risk. Without the proper system in place, CFOs may expose their business to unnecessary risks such as unaccounted for accounts receivable, high levels of customer delinquencies, untracked accounts and increased turnaround time.
The automation of tasks and process-driven functions enable CFOs to maximize efficiency and make better informed decisions based on accurate and timely data. Through the implementation of technology, freed up resources are diverted towards more important tasks such as forecasting and budgeting. With the ability to anticipate and analyze key performance indicators, CFOs can reduce cost and identify risks associated with nonpayment.
Furthermore, the use of software for credit and collections enables managers to detect payment fraud and tackle customer communication. CFOs can make use of automated letter-writing systems, offering effective credit control and collections management. Additionally, Invoice tracking safeguards customers from overpayment and cut down on time and money associated with having to pay multiple times for the same invoice.
Ultimately, by utilizing credit and collections software, finance executives can successfully address increasing pressure from limited resources and time-consuming manual processes. Through the identification and automation of key processes, CFOs can deploy their resources more efficiently across the order-to-cash cycle, in turn, creating more transparent and cost-effective operating environment.
