The Financial Risk Of Manual Order To Cash Processing
CASH APPLICATION MINIMIZE MANUAL INTERVENTION AND ERRORS
Cash application and order to cash processes involve number of time-consuming and manual tasks, such as reviewing incoming remittance, validating payments against invoices, and allocating cash to the right customer accounts. HR, accounting and finance personnel have to manually collect, compile and manage data from multiple sources and systems, deduplicate and reconcile them, and perform numerous calculations to ensure remittance accuracy and proper receipt. Such processes can be marred by errors resulting in inaccurate financial statements and missed payment opportunities.
Moreover, the costs of this manual intervention and errors can be significant, and the value of improvising the Order to Cash process is paramount for todays business. Human errrors compound with the complexity of over-the-counter and electronic payments, burdening organizations with unidentified, unreconciled and unallocated cash. Such errors could also easily lead to non-compliance, and potentially fines from the IRS and other governing bodies. Improper or inefficient management of cash application can also impact customer experience, damaging organizational goodwill and leading to irreparable business losses.
To mitigate the risks, organizations must take proactive measures such as implementing modern software to streamline and automate their Order to Cash processes. Robust and automated Order to Cash software can drastically reduce the risks of manual intervention and errors, while also driving operational efficiency and cash visibility. Leveraging technology to process payments quickly and accurately can result in optimized working capital management, resulting in improved customer services and understanding of customers? payment behavior.
Organizations that do not use software solutions to manage their Order to Cash processes risk significant financial losses, while damaging their customer relationships in the process. It is important to select suitable provider that can provide an end-to-end automated Order to Cash solution that meets the unique needs of the business. Such solutions reduce the manual interventions and errors, and help in proper allocation of payments on customer accounts leading to better efficiency and overall improved financial performance. An Order to Cash solution, if properly implemented, will result in maximum operational efficiency, providing firm foundation for taking the organizations financial operations forward.
