Leveraging Accounts Receivable Automation For Optimal Order-To-Cash Process Efficiency
Accounts Receivable Automation Global
Accounts receivable automation is essential for ensuring the successful execution of an order to cash cycle. Without it, organizations struggle to maintain control over their cash flow. For many finance departments at the C-suite level, lack of accounts receivable automation can mean lost opportunities and reduced organizational agility.
Thankfully, the advent of modern technology has eliminated the need for manual data entry and created significant efficiency gains by automating accounts receivable processes. To maximize the potential of accounts receivable automation, organizations should invest in solution with features designed to provide them with accurate and timely insights of their order-to-cash process.
A systematic approach to implementing accounts receivable automation is crucial for ensuring the success of the order-to-cash cycle. Here are the steps you should take to ensure an optimal order-to-cash-cycle:
1. Set the Requirements
The first step is to identify what needs to be automated. Consider the existing order-to-cash process and pinpoint the areas where automation can make difference, such as customer orders, payments, billing, and invoicing. Make sure to also include compliance requirements and regulations that need to be complied with, as well as any additional data points that should be captured and tracked.
2. Assess and Implement Technology
Once the requirements are established, it is time to consider the technology necessary to implement accounts receivable automation. Consider the scalability and total cost of ownership of the chosen solution, taking into account the potential of future growth. Ensure the platform can integrate with any existing systems, such as enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and data science and analytics systems.
3. Establish an Operational Workflow
The next step is to define the operational workflow. Document the entire automated order-to-cash cycle, including tasks that need to be performed, who is responsible for completing them, and how they will be tracked and reported. An order-to-cash workflow should consist of automated steps such as creating orders, invoicing customers, collecting payments, and reconciling customer accounts.
4. Automate Documentation
Finally, set up automated notifications to alert users of customer orders and payment requests and send out customer invoices and statements. Automating document delivery ensures customer intent is clear and that the process can be tracked and reported with ease.
Following these steps will ensure smooth and efficient accounts receivable automation process. With the right solution, executives at the C-suite level can easily and quickly have access to the insights needed to optimize their order-to-cash process and ensure maximum efficiency.
