Risky Business: Repercussions Of Neglecting Accounts Receivable Software
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When crafting and executing meticulous order-to-cash process, the chief financial officer (CFO) requires the timely utilization of an accounts receivable (AR) software solution. To meet their payment obligations efficiently and compliantly, companies must leverage the right software options to ensure every aspect of the process is in order. But what happens when the AR process is neglected?
Oftentimes, companies that opt out of favor of utilizing robust software solution face significant risks. Leveraging manual processes can be time consuming, often impedes accuracy, and may be accompanied by costly penalties and repercussions. To avoid these types of consequences, executives must carefully consider their order-to-cash protocols and regulations.
The risks of manual processes
When companies opt out of an automated AR solution, they are setting themselves up for avoidable pitfalls. Overlooking details of the process typically leads to preventable mistakes, including incorrect payment amounts, missing discounts, and late payments. They may also struggle to meet compliance requirements and fail to detect fraudulent activities.
Issuing erroneous transactions can have negative financial impact as well. This may include paying fines for incorrect or late payments, discounting errors, and fee violations stemming from oversight. Furthermore, if payment processing errors are not quickly rectified, this could cause companies to lose their status as preferred vendors, marginalizing their chances of future success.
The promise of automated software
To avoid non-compliance and save time and costs, reliable software application must be used. Sustainable AR automation facilitates quick and secure invoicing, timely payments, and accurate customer data processing. Its secure cloud-based platform enables return on investment, equipping companies with an automated method to quickly alert customers of due payments.
AR automation helps companies remain competitive and successful by providing efficient order processing, accurate payment tracking, and easy access to others involved in the order-to-cash cycle. In addition, the software offers multiple features to ensure compliance, including automated payment holds and custom notices.
24-hour access
Using an automated solution also grants CFOs access to the accounts receivable data from wherever they are, no matter the time. They are able to easily review cash flow and make accurate decision, granting them the ability to remain in control.
Employing an automated AR solution saves time, money and more importantly, helps companies remain compliant with regulations by mitigating these common risks. If business is in need of prompt and accurate data processing, the choice is clear- software solution is the only way to guarantee success for their order-to-cash process
