Choosing An Account Receivables Management Software: A Comprehensive Guide
Account Receivables Collection Strategy
For many corporations, choosing an account receivables management software is daunting and anxiety-inducing task. Cash flow is often seen as the lifeblood of small business, and well-selected Softwaresolution for managing account receivables can make world of difference in maintaining steady cash flow, improving core financial operations, and overall corporate financial health. This guide provides an overview of key considerations for executives and finance departments that are shopping for an order-to-cash solution, from assessment of current systems to assessing providers to provide higher service levels.
Understanding Your Current Order-To-Cash Process
The first step in choosing an account receivables management software is to understand how your company currently handles order-to-cash operations. It is important to comprehend the current process to better understand which software features need to be augmented and which additional features will offer the most business value. Consider analyzing all data associated with the current process including the speed of invoicing, the accuracy of billing and collection process, the number of delinquent accounts, business rules related to collections, customer contact information and communication preferences, profitability per customer, financial dispute resolution, and customer preferences when it comes to accounting procedures and payment.
Researching Softwaresolutions
Once full assessment of current order-to-cash systems is complete, it is time to explore Softwaresolutions. good starting point may be to review current businessestems to identify currently used technology and associated Softwareso that any new Softwaresolution must be compatible with existing ones. It is also important to determine any legal and regulatory requirements associated with the use of technology for order-to-cash operations.
When researching potential Softwaresolutions, look for key features that are beneficial for operations such as billing, customer histories, invoicing, payment reminders, data extraction and reporting. Consider features that allow customers to view invoices, provide an overview of how payments are spent, allow customers to pay invoices electronically, and utilize automated notifications to remind customers of impending payments. Cross-functionality with other processes, such as inventory management, customer relationship management (CRM), financial asset management, and project management systems, should receive consideration as well.
Selecting the Software Provider
The next step in selecting an account receivables management software is selecting the right provider. When selecting provider of receivables Softwaresolution, look for companies with proven track records, reliable customerservice and technical support, and proprietary technology and innovative features. Request for proof of successful implementations within variety of industries for validation of the provider’s capability. Make sure the provider also provides detailed training materials and provides regular system maintenance to ensure quality.
Apart from products and services, consider the overall compatibility of the provider with your companies own core values. Review the companies privacy policies, customer communication preferences, customersupport processes, and dispute resolution policies. It is also important to ensure that the provider is GDPR (General Data Protection Regulation) compliant in terms of data protection and privacy.
Implementation
The implementation of an account receivables management Softwareshould go beyond the installation of the software and should also include change management initiatives to successfully embed the system into the organization. Determine in advance who will be responsible for setting up the system, as well as any additional personnel and resources needed, such as customerservice personnel, accounting personnel, training personnel, user experience engineers or customer-facing support staff.
Defining the implementation process is also crucial step in ensuring successful order-to-cash software implementation. This includes defining realistic timelines, success criteria, setting up data collection processes for performance tracking, setting objectives and milestones for key personnel, planning for customer contact and communication, and defining the roles and responsibilities of involved departments.
Conclusion
An account receivables management software presents business with wealth of benefits that can help finance departments improve their order-to-cash operations. However, selecting the right software and provider, implementing the system and integrating it within the organization requires careful consideration of multiple aspects in order to achieve desired results. This guide provides an overview of essential points to consider before selecting and implementing an account receivables management software, that can help executives and finance departments make informed decisions when it comes to choosing solution for order-to-cash operations and improving overall financial operations.
