Delving Into The Benefits Of An Order To Cash Solution
Cash Collections Solution
For C-Suite Executives making their Organisation’s Financial Transactions Easier
When dealing with financial transactions of an organisation, the executives at the C-Suite often face two common issues: managing the flow of cash coming in and the slow process of collections. This can easily be helped by implementing an Order To Cash (OTC) Solution, an approach behind the working of an intuitive and efficient process, which each organisation can use to facilitate their activities. Here is step-by-step guide to use such solution.
Step One Learn about How OTC worksOrders To Cash for an organisation works by significantly and almost immediately connecting the various departments including Sales, Billing, Accounts Receivable, Customer Credit Management and Cash Application. This means data regarding invoices, delivery and payment between them is unified and makes the process faster and smoother. This helps in automatic updating of the numbers and amounts, reducing cost and time investment required.
Step Two Identify the Process Automation OpportunitiesIdentifying and understanding the process automation opportunities will help understand what can be achieved by deploying OTC solution. When the payment received is automatically recorded in the accounting records and the cash application is automated, it results in drastic reduction of manual work and accuracy of data is maintained. These opportunities can be categorised in invoice delivery, customer credit management and cash application.
Step Three Implement the OTC SolutionOnce the opportunities are identified and automation opportunities discussed, it is important to understand the requirements for OTC solution. This might include looking at the existing data sources and analytics, the exact resources and personnel involved, the current timeline for the order to cash cycle and the software needed for the solution to work. Evaluating the need is paramount here so look for OTC solution which caters to them.
Step Four Train staffWith OTC solution in place, significant amount of time is saved on the order to cash cycle and is cost-cutting measure. However, it is extremely important to train the staff involved in order to make the perfect use of the OTC solution. Make sure that the staff has thorough understanding of the solution to master the workflow and processes.
Step Five Review the ProcessOnce the solution is in place, take the time to review the order to cash cycle process by periodically measuring its performance. This will help identify how well it addresses the automation opportunities and how it is being used. Record the process metrics, review and report back to the team. Include in the review the speed of the process and the time and money saved by the solution to ensure that the company is deriving the maximum benefit from it.
ConclusionIn conclusion, an Order To Cash Solution is boon for an organisation’s existing financial operations. Once implemented, the automated process saves time and cost as well as aids in better accuracy and reliability. The teams involved in cash collections should be well-trained and the performance of the OTC Solution reviewed periodically. By following this step-by-step guide, C-Suite executives will be able to make their Organisation’s financial transactions easier.
