Operational Risk Of Not Utilizing Software For Order To Cash Automation
Ar Cash Application Process Flow In Order To Cash
For finance executives looking to optimize their order to cash process flow, the implementation of software is beneficial and essential tool. Without its adoption, corporations are negatively impacted with significant operational risk.
It is not prudent for companies to continue their manual cycle by relying on labor-intensive processes such as manual cash application. This does not leverage or scale up with the growing times, resources, and customer demands. Moreover, staff may not be fully knowledgeable of the companies internal order to cash process, introducing further risk in the operation.
For maximum efficiency, business must establish an effective cash-to-order process with Softwarespecifically designed for the task. Automation allows business to maximize the amount of money collected and minimize the amount of time spent manually processing customer payments. This contributes to more accurate forecasting and more efficient customer account management.
The acquired Softwareshould be able to enable customersegmentation and targeted collections based on customerspecific behavior and current credit position. it ishould build powerful data repository by collecting and creating customerspecific contact information, invoice and payment history, payment terms, payment method preferences, payment tracking from Receipt to Remittance, and the ability to detect duplicate payments or discounts.
Furthermore, customization options should be available to enforce internal controls, to encourage reconciliation accuracy, and improve customer retention. Management of rules for alert threshold notification will enable proactive detection of delays or discrepancies. And with the ability to accommodate an end-to-end solution to any process, it will enable unified and transparent cash application workflow.
It is evident that by simply automating the order to cash process with sophisticated software, business will be able to reap host of benefits while mitigating operational risk. The implementation of software in the order to cash process flow denies the risk of failing to meet customer demands and provides the necessary scalability to grow with an unpredictable customer base.
