Risk Of Not Utilizing Order To Cash Software
DSO FINANCIAL MEANING
The processes associated with order to cash are intricate and detail-oriented tasks, which can prove difficult to manage in an efficient manner when not utilizing software. Managing cash flow effectively, while countering risks, is critical concern for finance executives across the spectrum of industries. Failing to invest in order to cash software can levy reputational, financial, and operational risk to the corporation at large.
Without an automated order to cash solution, organizations risk missing out on myriad of potential efficiencies due to manual errors in data entry, transmission, and storage. Inefficiencies in data management can negatively affect customer relationships, resulting in decreased revenue streams, due to orders being processed incorrectly, invoices being sent out late, or even lack of revenue visibility. Not to mention, the time it takes for processing each invoice manually will slow down the time needed to close the books, leading to longer close cycles, and loss of valuable time without insights and visibility. Furthermore, manual processes come with hefty price tag when considering labor costs to enter, review and reconcile data.
Order to cash automation is also critical for preventing issues due to compliance, fraud, and cyber-security. Manual processes produce higher risk for human errors which can cause regulatory violations, as well as increase the likely hood of fraudulent activities such as duplicate payments, incorrect vendor setup, and improper exemption taxes. By leveraging professional-grade order to cash software, organizations can maintain their desired level of risk while changing the face of their operations.
An automated order to cash solution will assist organizations in streamlining operations by improving how they manage the process. By shortening accounts receivables and automated AR workflow, efficient collection control, and visibility into the status of each invoice and/or payment, organizations can significantly increase efficiency in number of ways. Additionally, utilizing order to cash software will not only increase efficiency, but also help organizations integrate and synchronize data across business applications, without manually entering the same information twice.
In todays digital age, overlooking the importance of an automated order to cash solution can have long-term and costly implications for any organization. Despite its costs, such software is necessary for cost savings, improved efficiency, and thereby, an increase in profits for the organization. For finance executives looking for an automated solution to streamline their order to cash process, failing to invest in order to cash software poses significant operational, reputational and financial risk.
