Risks Of Neglecting Deduction Management Automation
DEDUCTION MANAGEMENT BEST PRACTICE
Continued reliance on manual methods to manage deductions increases an organizations risk of missed or delayed deductions, lost cash flow, and unhappy customers. Automation via an Order-to-Cash (O2C) solution is essential for todays finance executive to stay ahead of the game. To do so, they must understand the inherent risks and rewards of turning to technology.
Inaccurate deductions can heap on hefty costs and detrimentally affect working relationships. Data-entry errors can add up quickly, leading to excess charges and incorrect recovery amounts. Likewise, mundane and labor-intensive processes can overpower resources and erode credibility, and an inability to keep up with customer changes can lead to onboarding hiccups.
The verification of deduction errors, validations of proof, and audit-tracking of every undertaking may sound too time-consuming task to be feasible. Without proper infrastructure, however, businesses are at the mercy of their customers, who may include erroneous deductions to begin with.
On the other hand, not seeking out ways to automate deductions generates limited visibility into structures, especially when it comes to periodic and specialized deductions. Consequently, the reconciliation of day-to-day discrepancies across channels can be manual ordeal. Over time, departments are bombarded with unnecessary stress and energy, not to mention the risk of overlooking or underestimating discrepancies.
Although there are risk factors to consider, automated deduction management, via an integrated O2C platform, almost always offers advantages over manual methods. Departments are more in control, more efficient, and more agile. With powerful analytics, teams can quickly and accurately access the most current information and gain clarity into the complexities of the order-to-cash ecosystem.
As the world becomes increasingly digital, those holding onto traditional methods are falling behind. For the finance executive looking to stay ahead, automating deductions provides an immediate return on their investment. Loss of customers and sales due to manual errors can be mitigated, cash flow is expedited, and deductions are reduced through streamlining processes.
In summarization, the risks of not utilizing an automated O2C platform are clear. Without automation, finance executives are at risk of frustrating customers, missing out on deductions and negating opportunities to boost efficiency and cash flow. Automation provides greater visibility, accuracy and speed that is simply not attainable with manual methods. Ultimately, finance executives can increase their competitive advantage in way that makes an immediate difference.
