Consequences Of Neglecting Order To Cash Software
Ar Collect
Many business recognize the financial benefit of automating their order to cash process, however, neglecting to do so carries tremendous risks. For organizations that do not leverage software for automating order to cash, financial losses due to errors, slow payments, and poor visibility are the most common concerns in the C-Suite.
Without an automated order to cash process, compliance errors become more common and add strain to compliance standards such as Sarbanes-Oxley. The importance of accuracy and efficiency in the order to cash process also becomes significantly more complicated. Every manual step requires verifying, validating, scheduling, and transporting data between different accounts. Due to slow payment turnaround, organizations risk missing out on discount opportunities and managing penalties from late payments.
Another issue that organizations struggle with without order to cash software is the lack of visibility throughout the process. Without visibility, managers are unable to detect process inefficiencies or errors in timely manner. Furthermore, the ability to look at data tracks and capture information quickly and accurately is severely impeded. Without visibility it is difficult to accurately forecast and manage cash flow, resulting in financial losses.
When considering order to cash software, organizations must take into consideration the downtime of implementing the software. Without properly addressed planning, the implementation process can be slower than anticipated. Throughout the implementation process, organizations need to accurately assess the availability of resources and current processes before introducing new order to cash system.
Replacing manual order to cash processes with Softwaresolution can be frustrating endeavor and elicit resistance from certain employeedue to lack of understanding of the system. Organizations must discuss the primary and secondary benefits of the software to staff, detailing the time and communication efficiencies that the software offers. When staff are equipped with the understanding of the software and its role in the process, it becomes easier to ascertain the time savings of automating the order to cash flow.
In conclusion, for organizations finding themselves directly impacted by manual data entry errors, cash flow shortfalls and lack of visibility, order to cash software can be the solution to their problems. While the implementation process can seem daunting, when done properly it can result in improved process flow and rapid return on investment.
