The Adverse Implications Of Not Utilizing Order To Cash Software
BUSINESS CREDIT APPLICATION SOFTWARE
For any business, the order to cash process is critical to capitalize on incoming revenue. As such, it is imperative for Finance Executives to ensure the endeavor operates in an efficient, secure, and cost-effective manner. Unfortunately, due to traditional inefficiencies of manual order to cash systems, many companies are foregoing software-focused applications and instead, relying solely on manual input. This technique may result in increased credit risk, loss of potential sales, and an accumulation of administrative costs.
Compromising credit checks and due diligence leads to heightened financial risks. Application software provides an automated and streamlined process that allows credit teams to review potential customer profiles and ascertain their creditworthiness. Automated software could also track all customer transactions to detect any violations, delinquencies, or irregularities. Furthermore, finance teams can use the software to review customer credit limits before approving or rejecting an order or an extension of credit.
Unfortunately, when companies opt to not use software such as third-party authorization and risk management, the order to cash process may become drawn-out and tedious task for employees. For instance, in the absence of software, manually-based system could delay invoice processing due to human error, slow processing times, or lack of uniformity when following established procedures.
Perhaps most notably, foregoing software may result in decrease in potential sales. Manual order to cash processes often take weeks to move customer through the workflow, and unfortunately, in this digital age, customers are expecting fast and efficient turnaround times. As such, when companies are not able to match the market speed, customers could turn to competitors. Last but not least, manual processes inherently lead to exponentially higher administrative costs due to associated labor and overhead.
From strategic perspective, corporations must understand the adverse implications of not utilizing order to cash software. While the initial investment of software may seem to be significant, organizations should understand the long-term risks of manual systems. Indeed, companies must assess the financial, operational, and customer benefits while factoring in potential cost savings. Although Finance Executives should always evaluate potential opportunities, the lack of software leaves many businesses exposed to fundamentally higher risk.
