Mitigating The Risk Of Non-Automated Integrated Receivables
Automated Integrated Receivables Software
For Finance executives in charge of Order to Cash operations, the dangers associated with not implementing automated technology solutions are manifold. Achieving both process efficiency and return on investment requires solutions oriented approach to understanding and leveraging automation software into the Order to Cash process.
Integrated receivables optimization promises to maximize the capture of payments, reduce costs, and create additional revenue opportunities. Yet, it will only be realized when manual steps are minimized, providing that only automation solutions can accommodate the needs of fast-paced and highly competitive environment.
The risks of not automating integrated receivables are apparent. These include difficulty matching payments to customer invoices, incorrect payments due to manual errors, and payment delays resulting from manual data entry. Ultimately, there could be an unacceptably high rate of revenue leakage due to inaccuracies, incomplete data, and insufficient cross-functional visibility.
Aside from the threat of revenue leakage, organizations could be exposed to financial losses due to lack of information about the customer and lack of insight into order statuses. Manual parsing of paper documents and lack of access to data can further reduce efficiency and perpetuate service issues. Finally, organizations are exposed to higher costs associated with manual activities and longer working capital cycles due to delays in cash collection.
While non-automation solutions may offer lower upfront costs, it is important to understand that they can result in higher costs in the long run. The ability to achieve and maintain visibility, process efficiencies, final cash collection and overall process capabilities are much higher when Softwaresolutions are employed.
Organizations must recognize and accept the importance of software automation solutions to the long-term success of their Order to Cash and Integrated Receivables processes. The utilization of such technology solutions can help reduce risk, optimize payment capture, improve operational efficiencies, reduce costs, accelerate working capital cycles and maximize cash collection. Digitalization and automated processes can create tremendous opportunities to save time, money and mitigate risk.
