Mastering The Order To Cash Cycle With The Right Software
What Is The Process Of O2C Cycle
it is common scenario for many business: invoices have been sent out, payments have been promised, but the collections process is going more slowly than expected. This can often be symptom of larger operational problem, an ineffective Order To Cash (O2C) cycle. That cycle involves number of different steps, and if not managed well, it can considerably impact business bottom line.
The O2C cycle is the link in businessesupply chain that connects the sales function to the accounts receivable function. it is responsible for managing the process from the time an order is placed to when payment is received.
When it works properly, the O2C cycle is critical for maximizing business revenues. The process allows for the cash from sales to be collected efficiently while also providing customers visibility into the status of any order they’ve placed.
But, as effective as good O2C cycle can be, it can quickly become nightmare if it isn’t managed properly and efficiently. That’s why it is so important that business rely on the right software to help them manage the process.
For many finance executives, the process of evaluating an O2C Softwaresolution begins with an understanding of what their current O2C process looks like. That way they can identify the specific needs and any pain points that need to be addressed.
Once these have been mapped out, it is important that the Softwaresolution provide visibility into the entire process, from the point where the order is placed to each step along the way to receiving payment. This level of visibility is essential for helping ensure order accuracy and to help identify any potential inefficiencies.
The goal is for the software to provide the kind of insight and automation that will allow business to streamline their operation and optimize their business relationships.
Additional capabilities that should be considered when evaluating an O2C Softwaresolution include the ability to:
? Easily send invoices and receive payments electronically
? Setup automated reminders and payment process alerts
? Automatically update order status, process approvals, and track contractual obligations
? Identify, minimize and manage disputes and delinquencies
? Securely store and retrieve data
? Integrate with existing financial and ERP systems
An O2C Softwaresolution can provide finance executives with the kind of information and insight they need to better understand their customers and an optimized process for efficiently and properly collecting on sales. The ability to collect cash faster, improve security, reduce disputes and delinquencies, and strengthen relationships with customers are all essential for helping business maximize revenue. By properly managing the O2C cycle, business can gain competitive edge in the market and improve their bottom line.
