The Benefits Of Automating Order To Cash
ACCOUNTS RECEIVABLE GOALS
As C-suite executive in finance setting, you want access to efficient solutions that can help meet you meet accounts receivable goals. An automated Order to Cash (OTC) solution could be the key to achieving your goals. The OTC process is the journey from customer order to the resulting payment. Automating the OTC can provide many benefits that can help with your accounts receivable goals.
Analyzing Your Accounts Receivable Goals
The first step in gauging the effectiveness of an OTC solution for your accounts receivable goals is to assess your current accounts receivables. Calculate DSO, which is the amount of time it takes your customers to fulfill payment obligations. Identify areas where there are delays in payment and any changes that have happened over time, examine both historical and current data to look for patterns. This will give comprehensive snapshot of any issues you have with accounts receivable in your organization.
Understanding OTC Automation
Once you have complete picture of your current accounts receivable, you can determine what solutions are available. Automating your OTC process can go long way to help you meet your accounts receivable goals. This involves eliminating any paper-based processes, such as invoices and physical documents, and creating electronic versions of the documents. An electronic version of an invoice can be sent online, eliminating manual data entry and the need for paper records. Automation also helps reduce errors and enhances the visibility of the OTC process.
Benefits of OTC Automation
An automated OTC system comes with many advantages for meeting your accounts receivable goals. An automated system means reduced manual and repetitive tasks, fewer errors and improved cycle times for invoices. Automation can also improve customer service, as customers can check the status of their orders online and quickly follow up with any issues. All of this adds up to improve the overall customer experience. Finally, an automated OTC solution can also result in fewer errors and less time spent on manual processes, helping to drive down costs and improve overall accounts receivable rates.
Selecting the Right OTC Solution
Once you have determined the benefits of an automated OTC system, you can start to look into the specifics of selecting the right solution. When selecting an automated OTC solution, consider the features and capabilities of the software. Look for features such as automated invoice generation, approval routing, document management, payment processing and other features that can help you automate and streamline the process. Additionally, make sure that the OTC solution is easy to use, so that new users can pick it up quickly and existing users can easily adjust to changes.
Implementing Your OTC Solution
Once you have selected the right OTC solution, you can begin to set up the automated process. Work with the provider to ensure that the solution is properly configured and ready for use. Make sure to devise thorough training program for new users, so that they understand the system and how it works. Next, roll out the solution in stages and make sure to monitor any issues or delays that may arise as the solution is being implemented.
Monitoring and Evaluating Your OTC System
Once the system is up and running, begin to track its effectiveness and monitor any areas of improvement. Analyze the data and use it to evaluate any changes you need to make to the system. Track customer feedback and look for any changes in accounts receivable performance. Make adjustments as necessary and continue to develop the system over time.
Conclusion
An automated Order to Cash system can be the key to meeting your accounts receivable goals. By analyzing your current accounts receivables, understanding the benefits of OTC automation and selecting the right OTC solution, you can create an efficient system that helps streamline the OTC process and improve customer relations. Implement the system in stages, monitoring any issues and evaluating the data to make sure the OTC solution meets your needs.
