The Tangible Benefits Of Automating ARIn Order To Cash
AP AR AUTOMATION
In todays highly competitive business environment, financial executives are keenly aware of the need to maximize efficiency and reduce costs in order to stay competitive. One key focus area for improving operations is Accounts Receivable (AR) automation utilizing dedicated software for improved Order-to-cash cycle management. This has the potential to have substantial impact on both an organizations performance, success and also its bottom-line.
In short, automation of AR processes can save significant time and money, both in direct and indirect costs, by reducing manual and administrative involvement, streamlining communication and increasing the speed of receivables collection. Automated invoicing, payment processing, and cash application can dramatically reduce cost-per-transaction and improve customer service, enable more precise decision-making, and make back-office processes more efficient.
Deployment of an AR automation solution begins with an evaluation of the companies current AR performance and recognition of the financial benefits its deployment can provide. This should include an assessment of the potential automation scope, such as expanding process coverage, improving end-to-end processing speed, and identifying areas in which business operations can be improved. Additionally, the solution must be able to work with existing systems and processes in order to minimize disruption of operations.
When evaluating an AR automation solution, the software must possess the capability to customize to the companies needs, including features such as automated appointment scheduling and document tracking, automated dunning and collections management, as well as automated invoice and document filing. The solution must also be able to integrate seamlessly with back-office systems, allowing for greater visibility and accuracy in the capturing of customer data and the collection of payments. Additionally, the software should be able to provide detailed reporting capabilities to enable analysis of customer and collection data to enable proactive decision-making.
Overall, an efficient, automated Order-to-Cash cycle can provide significant benefits to organizations in terms of time savings and cost reductions, increased accuracy and visibility, streamlined communication, improved customer service, reduced risk of compliance violations, and better cash flow. For organizations looking to reap the rewards of AR automation, the selection of the right AR automation software is essential to ensuring successful implementation.
