Exploring A Solution To Accounts Receivable: An Overview Of Order To Cash Software
Accounts Receivable Whitepaper
Organizing accounts receivable continues to be one of the foremost challenges for Chief Financial Officers and those operating in the finance function. This is particularly true as efforts to optimize cash flow, control spending and ensure compliance become increasingly complex. An effective solution must be in place to ensure accurate, traceable records of accounts receivable resulting in efficient processing and sustainable growth.
Order to cash software provides an end-to-end solution, automating processes and tasks associated with accounts receivable. Such automation offers companies sophisticated, yet granular, system in which to monitor cash flow, streamline payments and prevent accounts receivable from going into default. Here, we discuss what order to cash software is, the various components and features, and how the solution could improve business cash flow management.
What Is Order to Cash Software?
Order to cash (OTC) software is type of computer program designed to help companies accurately manage and control their accounts receivable and accounts payable processes. Through the use of this software, company can achieve accuracy, traceability and auditability around their accounts receivable activities.
Essentially, OTC software works to automate and streamline accounts receivable by integrating the entire process, from invoicing through payment, in one streamlined workflow. This allows companies to not only more accurately track their accounts receivable, but also to improve their cash flow and prevent any accounts receivable from going into default.
What Features Does Order to Cash Software Provide?
OTC software can provide an array of features and benefits, including:
?Elimination of manual processes: Automating and integrating the entire process, from invoicing through payment, streamlines accounts receivable and eliminates manual processes, thus reducing errors and the time spent managing accounts receivable.
?Accounts receivable tracking: This software allows users to track customers’ accounts receivable in one unified system and features real-time data entry and review capabilities.
?Data visibility: The software is equipped with reporting and analytic capabilities, enabling users to view the entire order to cash process, find trends, improve decision-making and get comprehensive understanding of accounts receivable.
?Processes continuity: OTC software allows companies to set up payment terms that ensure compliance and continuity, enabling them to ensure their accounts receivable remain managed and maintained.
?Centralized workflow: All of the information associated with customers accounts receivable and payment can be centralized and organized, allowing for improved visibility and accuracy of information.
?Automated payment process: Payment processing can be automated, ensuring timely payments and helping to prevent accounts receivable from going into default.
How Can OTC Software Improve Accounts Receivable?
By providing an end-to-end solution for accounts receivable management, OTC software allows companies to improve their cash flow, better manage their accounts receivable and reduce the risk of accounts receivable going into default. The automated processes, as well as data visibility and insights, enable companies to predict cash flow cycles and ensure payments are managed in an accurate and timely manner. Additionally, the system allows companies to run simulations and analyses to identify potential issues and take preventative measures.
Overall, OTC software not only eliminates manual processes, decreases errors and saves time, but also provides users with real-time view into accounts receivable. This allows companies to ensure cash flow is managed accurately and efficiently, ultimately resulting in improved profitability, greater compliance and sustainable business growth.
