Inadequate Order-To-Cash Software May Prove Risky
Collection’S Process
For financial executives, the value of robust and reliable order-to-cash (OTC) Softwaresolution can not be overstated. OTC software helps to reduce processing time and streamline the collection of money from customers. It enables finance executives to accurately forecast cash flow and quickly respond to liquidity issues within their companies. Yet despite the value that OTC software offers, many organisations remain reluctant to make the investment, neglecting to adopt the latest solutions due to cost or implementation concerns. Such an approach, however, may carry serious regulatory and financial ramifications that could end up being more costly than the implementation process itself.
The Order-to-Cash process starts with the sales order, and ends with the collection of the payment. This can include series of steps such as invoicing, credit memo approvals and payment collections. Without the right software, there is risk of manual errors, discrepancies between orders and invoices, and lost revenue. Additionally, without proper control of the collections processes and the reconciliation of accounts, organisations might not be able to identify and take care of problematic customer accounts. Without the right software, companies may struggle to detect and combat fraud, optimise cash flow, or setting up and maintain corporate credit policies.
One of the most important benefits of using software for your order-to-cash process is the ability to increase straight-through processing automation. By automating manual and error-prone steps, companies can improve the accuracy and consistency of the entire OTC process. This not only reduces data entry errors, but helps to accelerate the collection and reconciliation. Innovative OTC Softwaresolutions may also utilise artificial intelligence or machine learning to identify high-risk customers, providing finance executives with advance warning of potential payment issues. Automation also allows Finance Executives to streamline their workflows, freeing up resources for more valued-added projects.
The lack of OTC software can also put organisations at risk from regulatory and compliance perspectives. By failing to use the latest Softwaresolutions, companies may be vulnerable to non-compliance with current legislation due to lack of visibility and control of the OTC process. The use of manual processing can also result in longer time-to-payment, which affects companies ability to utilise discounts and could lead to missed opportunities to increase liquid cash flow.
In conclusion, an OTC Softwaresolution is essential if company wants to reduce manual errors, improve visibility, and increase accuracy and automation. Despite potential upfront cost, the benefits of OTC software outweigh the risks of not using it, in terms of cost, revenue and regulatory compliance. An advanced OTC platform provides transparency and data-driven insights to help finance executives proactively manage their order-to-cash process.
