Maximizing Operational Performance Through Automated A/R Solutions
Automating Collection And Deduction In A/R Solution
Achieving optimal operational performance requires careful consideration of both legacy and emerging technologies. In the digital era, many organizations have turned to automation for enhanced efficiency and cost optimization. When it comes to Accounts Receivable (A/R), automated collection and deduction in the order-to-cash (OTC) process can exponentially multiply success.
Deploying an automated A/R solution is winning strategy for enterprise finance teams. Such solutions allow for the automated management of customer payments and deductions, typically for variety of accounts, through software. Benefits include quick and accurate visibility into customer invoices as well as improved cash flow. Automation with streamlined OTC software also permits finance teams to streamline activities within the accounts receivable, payment and deduction process and accelerate the collection of payments.
The Accounts Receivable ChallengeResolving outstanding invoices and realizing steady cash flow can be challenge in many organizations and the order-to-cash process is prone to be bogged down with multiple manual steps and subsequent errors. Manual entry may prove to be tedious, and attempting to extract actionable insights from siloed data can create even more delays and inefficiencies.
Finance teams must also cope with customers who pay with various methods such as paper checks, wire transfers, and virtual payments. In 2018, credit card payments accounted for over 50 percent of invoices 45 days past due. Such payments can require additional steps such as credit approvals and enhanced security checks.
An automated A/R SolutionStrategically selecting an automated A/R solution for the order-to-cash process can help to increase precision and accuracy and provide global availability. In addition to fast and accurate cash collection, an automated A/R solution reinforces visibility into customer invoices at scale and gives teams the opportunity to easily analyze key order-to-cash metrics; this enables smarter decisions to be made.
Finance executives utilizing an automated A/R solution can easily monitor customer invoices and payments, as well as correlations and interactions between invoice, customer credit and collection activity. Automation delivers streamlined approach to managing payment and deduction disputes, creating greater operational agility.
By streamlining the A/R process and quickly resolving any dispute resolution activities, organizations can further increase customersatisfaction and diminish their risk exposure in the face of increased compliance demands.
In ConclusionSynthesizing next-generation A/R solution ensures data-driven activities can be synchronized in real-time, maximizing operational performance. By automatically streamlining customer data, organizations can better position their enterprise for extended success. With automated collection and deduction in an order-to-cash software, finance leaders can guarantee elevated levels of performance, satisfaction, and accuracy.
