Cash Management In The Digital Age: The Risks Of Neglecting Automation
B2B Automated Cash Management Tool
The order to cash process is an important element of successful cash management. Without it, B2B enterprise is at risk of range of costly issues resulting from inconsistencies in closing cash receipts, inconsistencies in cash balances, as well as possible fraudulent activity. The risks associated with not utilizing Softwaresolution to automate the order to cash process should not be overlooked.
Inaccurate Invoicing
Manual cash management is riddled with the potential for mistakes, especially within the elements of the order to cash process. particularly common issue is the risk of inaccurate invoicing due to manual data entry errors. Without the benefit of automation through software, invoices are vulnerable to misplacement and duplication. Moreover, manual sifting through transaction entries and consolidation with recent payment information is tedious, timely task that is prone to miscalculations and inaccuracies.
Increased Compliance Risk
For B2B companies whose cash management processes span multiple countries, safe and compliant handling of client funds becomes an even greater concern. Between fluctuating currency markets, fluctuating interest rates, and various legal and regulatory requirements, global cash flow oversight can become massive task for manual operation. Without the capability of intelligent automation, managing compliance risks in international order to cash process is near-impossible.
Tax Implications
The order to cash process is rife with taxation issues, and global companies in particular face tax complexities. From instituting country-specific tax codes to collecting value-added taxes prior to payment, many aspects of order to cash require significant attention to ensure that money moves out of and into companies accounts in an accurate and compliant manner. Yet, manual entry of transactions and general oversight of payment remittance can create high potential for tax related discrepancies.
Fraudulent Activity
Last, but certainly not least, organizations working with manual cash management processes face an elevated risk of fraudulent activity. Without the ability to implement comprehensive checks and balances, stricter internal controls, or automated account reconciliation, B2B companies are significantly more exposed to fraudulent accounts or fraudulent transactions.
Automation of the order to cash process has revolutionized the way business manage their accounts and guard against unwanted exposure to risk. By leveraging specific Softwaresolutions, CFOs can greatly reduce the likelihood of errors, avoid non-compliance, and mitigate the risk of fraudulent activity. Automated cash management tools and solutions are critical components of successful order to cash process.
