Introduction To Order To Cash Software And How Account Receivable Processes Can Be Simplified
Account Ar
For the modern business executive, streamlining their accounts receivable processes and operations is of utmost importance. Knowing the right solution can help ensure that payments are made quickly, accurately and securely. Order to cash (OTC) software offers business comprehensive suite of features that simplify accounting procedures and the AR process.
The order to cash process encompasses the multiple steps involved when orders are captured and fulfilled by company, and then payment is received by the same company. As part of the OTC process, account receivable activities include invoicing customers and ensuring that relevant payment is received in-time and accurately. OTC software makes it possible to automate several of these processes within the companies.
In this guide, we take closer look at how OTC software can assist in simplifying accounting procedures, the AR process and how financial executive can benefit from such solution.
Step 1: Choose Suitable OTC Software Package
The first step an executive should take is to choose dependable and suitable OTC software package and set-up an account. Careful evaluation of features and capabilities should be conducted in order to make an informed decision.
The chosen Softwareshould cater for wide range of billing, invoicing and payment related transactions. it ishould be able to support credit monitoring, collections, dispute management and be able to generate consolidated AR reports. Additionally, it ishould include web portals with dashboard displays to enable easy tracking of payments and customers.
Step 2: Set-Up Automated Invoicing
The next step requires configuring the OTC software to generate and issue invoices automatically every time an order is processed, this also applies to existing customers. Automated invoicing helps to reduce the time taken to manually generate invoices, and currency and language can be modified.
Step 3: Track Orders and Remittances in Real-Time
OTC Softwaresupports tracking of orders and remittances in real-time, this can be done through integrated customer portals. It also allows customers to view accounts transaction history. With up-to-date information, business can make accurate decisions.
Step 4: Monitor Credit and Cash Flow
The software can be used to monitor customer credit to ensure that the risk posed by customers is kept to minimum. Additionally, OTC software helps to ensure consistent cash flow. The program can automatically generate reminder notifications when payments become overdue and suspension of future orders can be implemented until payment is received.
Step 5: Consolidate AR Status
Executives utilising OTC software benefit from comprehensive display of their customers accounts and invoice statuses. Through various integrated modules, one can easily monitor credit and collections, analyse customer payment patterns, manage invoices and cash, and access ad-hoc reports. This in turn helps to simplify financial reporting and makes it easy to track core customer metrics.
Conclusion
To summarise, OTC software provides financial executives range of useful features to simplify accounting procedures, automate their AR process and ensure that invoices are accurately and quickly paid. With an efficient solution like OTC software, finance executives can access real-time customer data and accounts, while being able to track customer payment patterns and reduce the risk posed by customers. In short, OTC software is beneficial way to optimise customer accounts process.
