The Peril Of Neglecting Order To Cash Analytics Automation
AR COLLECTION METRICS AUTOMATION
In an increasingly competitive market, businesses have to be able to provide near-instantaneous delivery of customer orders while also properly managing their accounts receivable process. Consider higher-value customer orders which need to be processed quickly to ensure customer satisfaction or prompt payment discounts. Without automating the accounts receivable analytics, businesses may not be able to optimize their customer order to cash process, and may be missing out on key opportunities for optimizing cash flow.
Sadly, many companies neglect the importance of automation when it comes to the order to cash process. By relying on manual data entry of customer orders, businesses are effectively trading precious time and resources away. The amount of data and speed of analysis that is possible only with automated software analytics is invaluable, particularly when addressing customer orders that have complex requirements in terms of invoicing and payment terms.
Software analytics allows finance executives to stay apprised of order to cash analytics in real-time. They can immediately respond to any incoming customer order, ensuring compliance with the customer’s needs. Not to mention, this also allows them to better assess risk and adjust payment terms to optimize companies cash flow.
With so much competition in the market, it is essential to be able to process customer orders quickly and effectively. Faster invoice processing allows customers to pay quicker, which in turn increases the time between invoice payment and cash collection. Automation analytics software provides the framework by which finance executives can proactively manage their accounts receivable process to maximize their return on investment (ROI).
One of the advantages of using software for accounts receivable analytics is the ability to better track and predict customer behavior. By monitoring spend patterns, finance executives can determine who may take longer to pay or may need longer payment terms. Further, software analytics allows for data to be consolidated and organized across numerous customer orders, allowing for more informed predictions.
Overall, the cost savings and visibility that is realized from using software for order to cash analytics cannot be overstated. Not utilizing software analytics may hinder corporation’s ability to process customer orders quickly and accurately and prove to be quite costly. Automating the accounts receivable analytics allows finance executives to streamline their workflow, thus creating greater efficiency and optimizing cash flow.
