Risk Of Relying On Manual Order To Cash Process
DEGREED AR AUTOMATION
In this digital age, organizations have increasingly come to rely on software automation to streamline operations, improve accuracy, and reduce costs associated with manual processes. For example, order to cash (OTC) software can drastically reduce organization costs by automating operations such as invoice collection, revenue recognition, cash receipt, and dispute resolution. Despite these obvious benefits, many organizations still rely on manual processes for their OTC operations. This approach can lead to significant risks, including higher costs, inefficiencies, insecurities, and business continuity threats.
Higher Costs
Organizations embracing manual processes miss the benefit of new and improved ways of doing business that comes with leveraging the power of technology. The cost of manual processes is much higher than software-enabled automation, mostly due to the cost of labor. This can lead to skyrocketing operational costs when the company attempts to scale. The complexities and complexities of manual processes increase as an organization grows, and staying manually organized is challenging for large corporations.
Inefficient Processes
Manual processes can be inefficient when it comes to data entry, order taking, and invoice processing. Without automation, users have to log in to the system, enter data manually and try to track orders from start to finish. This can lead to lost orders, data duplication and incomplete records. In technology-enabled environment, data is automatically entered, orders are tracked, and accounting is automated. This enables faster order processing, fewer errors and improved customer satisfaction.
Security Risk
Organizations who rely on manual processes face significant securitization risks. This is because data is stored on paper documents, which can be stolen or lost, instead of secure server. Additionally, manual processes can often invite fraudulent activities. This can include fake invoices, false records, and incorrect data entries. Automated processes help to mitigate this risk as data is stored on secure servers and all transactions are tracked.
Business Continuity
Organizations using manual processes also face serious business continuity risks. Should key personnel, who possess the knowledge and expertise for the manual process, leave the organization or otherwise become unavailable, the business can come to halt. The company may be unable to process orders, generate invoices, or track finances. Automation, however, can help mitigate this risk by making essential business processes independent of key personnel.
In summary, organizations that rely on manual processes to manage their order to cash operations are at risk of increased costs, inefficiencies, securitization issues, and business continuity threats. Investing in OTC software automation is cost-effective solution that can mitigate these risks and enable the organization to scale. This can be achieved by leveraging new technology to streamline processes, improve accuracy and customer satisfaction, and bolster security and business continuity.
