Risk Of Not Utilizing Order-To-Cash Software
AR DEDUCTIONS
Without the use of order-to-Cash (OTC) software, early warning systems to detect and mitigate risks concerning cash flow cycles, accounts receivable (AR), and credit control are unavailable. Management of the AR function can become time consuming and inefficient procedure without automation, resulting in missed customer payments, errors in invoicing, stale aged receivables, and potential for decrease in customer satisfaction and retention.
For the Finance Executive, comprehensive solution provides resources such as enhanced cash forecasting and automation, which can enable proactive approach to managing all phases of the order-to-cash lifecycle, from logistics and order management, through invoice generation and payment collection. This can result in decrease in costs, faster customer payment collections, improved cash flow and enhanced customer relationships.
Managing customer orders, fulfilling and invoicing them on time and processing payments accurately can be daunting task without the use of an automated solution. Having the ability to query, analyse and manage portfolio of customer and financial data enables improved communication with customers and streamlined processes. As C-Suite executive, the ability to integrate AR with other solutions, such as general ledger and financial consolidation systems, enables the evaluation of customer activities and accounts across multiple systems of record as well as providing stakeholders with accurate and timely insights.
Poor order-to-cash processes can result in payment disputes, an increase in bad debt, and higher costs in customer service and collections. The risk of not having focused solution increases potential errors that can lead to increased cost, late payments and customer dissatisfaction. quality automated solution provides the means to effectively and efficiently manage accounts receivable, reduce credit risk and increase customer satisfaction.
Additionally, incorporating an efficient dispute management process should enable the issuing of credit and collection calls to be handled more effectively. Having an efficient approach ensures both timely and accurate resolution of disputes with full audit trails for later reference. Furthermore, audit trails support the ability to track payment progress, minimizing the risk of lost payments due to lack of documented records.
Taking proactive steps towards the improvement of accounts receivable processes is the key to unprecedented, streamlined operations and increased customer trust in all Financial aspects of business. With the right solutions in place, it is possible to make the transition from unsustainable manual processes to automated order-to-cash processes entirely possible.
