Improving Order-To-Cash With Accounting Dso Software
Accounting Dso
For finance executives aiming to improve operational performance, integrating an effective Order-to-Cash (OTC) system that includes an accounting Days Sales Outstanding (DSO) software is essential. Striking balance between customerservice, cash flow, Revenue Recognition, and accounting accuracy should be the pinnacle of any finance executive?s strategy when assessing OTC Softwaresolutions.
Accounting DSO solutions use resources within the company to extend customer credit while allowing more comprehensive view of the customer credit cycle and customer payment behavior. Credit is typically granted and monitored on an individual customer level, allowing operations managers to actively manage credit terms while minimizing customer portfolio risk. Including an accounting DSO software into customers credit portfolio normally constrains risk level associated with that client and limits companies accrued credit exposure.
Further, an effective DSO solution should allow customers to pay before the invoices are due. Offering customers an early payment discount is concept that has been utilized by many business to increase cash flow without needing to collect payments in advance. When used in combination with an accounting DSO software, such discounts can drive customersatisfaction and incentive positive business relationships.
The added visibility into the customer cash cycle provides reliability for companies to forecast and improve their workflows on the back end. An OTC system with DSO software enables companies to better predict cash flows. Companies can anticipate future cash flows and know when receivables become due, benefits that can result in more efficient budgeting, inventory management, and forward planning.
Accounting DSO software also offers an invaluable layer of protection against potentially fraudulent behavior, as well as enables an optimal level of internal security and process control. By utilizing an accounting DSO solution, controlling access to the system avoids manipulation and inaccuracies while providing reliable operating record.
When it comes to improving operational performance, employing an OTC system with integrated accounting DSO software is the way forward. The added insights and transparency supplied by this software offer the means to success for modern finance executives.
