How To Use An Accounts Receivable Automation Solution In Your Order To Cash Process
Accounts Receivable Automation Solution Costs
Accounts receivable automation software offers number of benefits by streamlining an organizations receivable and order to cash processes. By reducing the time and complexity involved in collecting receivables, organizations are able to maximize cash flow and reduce operating costs. This article provides step-by-step guide on how to use an accounts receivable automation solution in order to significantly improve your companies order to cash process.
Starting your accounts receivable automation journey begins with process and technology analysis. This step examines the current state of your order to cash system, from order entry to customer payments. An audit of current processes, technology, and controls should be conducted to determine where the greatest opportunities for improvement exist. This can reveal where manual activities are slowing down the order to cash process, as well as how existing controls can be automated to increase efficiency and reduce errors.
Once your current process is understood and optimized, the next step is to select and implement an appropriate accounts receivable automation solution. This can be done by comparing available Softwaresolutions and select the one that best fits your companies needs. Common features to consider when making this decision include the ability to automate manual order entry, to support multiple payment options, the ability to offer instant credit, and to integrate with your accounting system.
Once your accounts receivable automation software has been installed, you can start configuring the solution to fit your companies requirements. This configuration typically includes setting up customer profiles, inputting billing addresses and payment terms. This will also include defining workflow rules, such as when and how to collect invoices, as well as when and how to apply customer payments to invoices.
Once the initial configuration is complete and approved, the next step is to actually use the accounts receivable automation solution. This is where the most time-consuming part of the process is completed. In order for the software to be effective, customer invoices must be prepared, reviewed, and presented to customers. Automated invoices are emailed (or mailed), with reminders sent if necessary. Additionally, customer payments must also be reviewed and reconciled against invoices, with any discrepancies noted and addressed.
Finally, your accounts receivable automation solution should be regularly monitored and analyzed. This step is essential to ensure that the data being collected is accurate, that invoicing and payment resolution times are appropriate, and that customer relationships are still being managed effectively. Analyzing the data collected by the software can also provide valuable insights into potential improvements that can be made to the order to cash process.
By streamlining the order to cash process with an accounts receivable automation solution, organizations of all sizes can increase the efficiency of collecting receivables and reduce the complexity of managing customer invoices and payments. By following the steps outlined here, CFOs can ensure that their order to cash process is managed optimally and remains compliant with best practices.
