The Benefits Of Order To Cash Software
AR MANAGEMENT SOFTWARE
Whether you are the director of the finance department or the chief financial officer, the demand for greater efficiency, agility, and cost savings is becoming increasingly difficult to manage. According to 2019 survey, over two-thirds of firms surveyed lamented the complexity of their Accounts Receivable solution, nearly one-third citing it was not producing the desired impact on their business. With A/R Management Software and Order to Cash software, organizations can maximize their cash-flow and reduce the complexity of Accounts Receivable tasks.
Order to Cash Software is digitally-enabled Accounts Receivable solution for organizations of all sizes. It unifies and automates A/R and cash applications processes by leveraging artificial intelligence, machine learning, and cloud-computing technologies. These features enable organizations to streamline their A/R processes, improve cash flow, accelerate time to invoice, increase cash collections, and reduce Days Sales Outstanding (DSO).
Here is step-by-step guide to setting up an Order to Cash Solution for your organization:
Step 1: Choose product and create contract:
The first step in setting up an Order to Cash Solution is to choose the right product, one that meets the companies specific needs. Start by researching the available options, such as, comprehensive accounts receivable and collections software and accounts receivable automation. Once you?ve identified the right provider, create and negotiate contract, which outlines the expectations and responsibilities of all involved parties.
Step 2: Set up an Organization Chart and define responsibilities:
Once the product and contract are in order, you must set up an Organization Chart that identifies roles and responsibilities within the company. Include individuals from the Accounts Receivable, Cash Applications, and Collections Departments to ensure all tasks are accounted for. You may also consider implementing system for tracking the activities that must be performed and assigning deadlines for completion.
Step 3: Map out the Accounts Receivable process:
After the Organization Chart is in place, you must map out the entire Accounts Receivable process. This includes the flow of activities from the time an invoice is generated until it is paid. It is important to get detailed in order to identify inefficiencies and ensure no task is overlooked. You should also assess the current system for errors by comparing reports and confirming all activity is in accordance with the contract.
Step 4: Implement the Order to Cash Solution:
Once the organization chart and Accounts Receivable process are in place, it is time to install the Order to Cash software. This should include any necessary training, setting up automated reminders and notifications, and connecting the A/R data directly to the Cash Application system. Doing so allows accounts receivable staff to focus on tasks of higher value, such as reconciliation of accounts and customer service.
Step 5: Establish monitoring procedures:
Once the Order to Cash Software is installed, establish procedures to monitor performance and ensure the accuracy of the data. Efforts should also be made to continuously review the A/R process to identify any areas of improvement and to anticipate new regulations or standards set forth by the industry or region.
Step 6: Review data and update the accounts receivable system:
Once the Order to Cash Solution is fully operating, ongoing reviews of the data should be conducted. Financial professionals should check for discrepancies and discrepancies for each customer account. If there are discrepancies related to invoices, payment terms, or other data, the system should be updated accordingly.
Conclusion
An Order to Cash Solution is powerful tool for any organization trying to streamline Accounts Receivable processes and maximize cash flow. By taking the necessary steps to set up the system properly, organizations will be able to reduce costs and increase efficiency. By relying on the right technology, such as artificial intelligence, machine learning, and cloud computing, organizations can ensure accuracy, speed, and accuracy of their Accounts Receivable system and avoid costly mistakes.
