Optimizing Order To Cash With Automation
RECEIVABLE AUTOMATION
Operations in the order to cash (OTC) process are essential to capturing revenue and the resulting profit. With the implementation of automation, these OTC processes can maximize efficiency and create strategy to further increase profitability. This article will explain how receivable automation is an integral part of the OTC process and provide detailed step-by-step guide on how to optimize the software to enhance performance with regards to OTC operations.
Receivable automation combines the usage of software and processes that leverage data within corporate systems to streamline operations. It provides real-time visibility, faster processing time, and reduced costs in financial operations to drive efficiencies. Automation technology is essential for maintaining accurate and up to date accounts receivable records and simplifying workflow by creating consistency, visibility, and control.
Receivable automation includes built-in functions such as pro-forma invoice automation and accurate credit management that help to optimize the OTC process. It also lowers costs by providing standardized processes and automation which help reduce billing errors and maximize data accuracy. It integrates with existing systems so that invoices and payments are managed automatically, with no manual intervention necessary. Automation eases the burden of manually inputting and updating data, freeing up time for other duties such as credit control and customer service.
When selecting an order to cash software solution, it is important to review the features and the software?s ability to integrate with existing systems. OTC solutions should include features that integrate order processing and payment functions, as well as incorporate automated invoicing, buyback management and real-time insight. Automated invoice approval, payment plans and payment scheduling are important features as well.
Once the ideal order to cash software solution has been identified, the following step-by-step guide may be used to optimize the software for best results in receivable automation:
Step 1: Setup Credit Policies Conditions The organizations credit policies, to be tied to specific payment terms, should be established and included in the software. These credit policies should include minimum credit iscore, payment terms, or commercial terms, e.g. payment frequency, payment methods, etc.
Step 2: Introduce Checks and Automate Credit Decision Process With the implementation of receivable automation, checks can be developed to ensure that customers meet predetermined credit requirements. Credit decisions can be automated and updated in real-time, providing payments teams with immediate feedback.
Step 3: Automate the Order-to-Cash ProcessThe order-to-cash process should be automated to streamline the processes and reduce the manual efforts. Through automation, invoices and payments can be tracked simultaneously, eliminating the need for manual data entry and reconciliation.
Step 4: Push for Adherence to Automated Payment PoliciesOrganizations should push to ensure that customers are following the invoice payment terms and commercial terms. To receive payments on time, the organizationshould establish mutually agreed payment solutions that fit the customer?s budget and the organizations revenue goals.
Step 5: Implement Automated Payment TechnologyImplement payment processing solutions, such as ACH payments, automated payment plans, e-invoicing, and recurring billing. These automated solutions ensure that payments arrive safely and on time.
Step 6: Monitor Evaluate RevenuesFinally, monitor the operations and evaluate revenues. By setting performance and revenue goals, organizations can compare their order-to-cash performance to those goals.
Receivable automation is an integral part of the OTC process and is key to maximizing efficiency and profitability. The above-mentioned steps provide an effective guide on how to optimize order to cash software for automated receivables, driving efficiencies and improved real-time financial insight. Despite the technical nature of the task, when using automated payment solutions and receivable modules, it is easy to achieve cost savings and improved customer experience. In sum, receivable automation is powerful tool to streamline and optimize OTC operations.
