Leveraging Software To Improve Operational Performance In The Order-To-Cash Process
A/R Software And Solution
With the advancement of enterprise systems and software, companies now have the technological capability to conduct their order-to-cash (OTC) processes more profitably, securely and efficiency. Automating the accounts receivable collection process offers numerous advantages, such as improved scalability, shortened collection periods, improved customer experience and reduced costs of payment processing. To ensure that OTC processes are running optimally, CFOs and other finance executives should consider leveraging software to streamline and control these operations.
A/R software can help companies effectively manage all stages of the OTC process; from order entry and replenishment to shipping, delivery and collection. Implementing secure integrated system minimizes the amount of manual data-entry required to keep track of orders, consequently reducing time and cost associated with processing. The Softwareshould also incorporate features such as payment trends, applying and tracking discounts, invoicing and auditability that make it easier for companies to maintain record-keeping system for tax purposes and with customers.
Additionally, the Softwareshould include robust data analytics capabilities that allow organizations to track payments, analyze expenses from the client-side, such as delivery costs and administrative overhead, and identify opportunities to improve process effectiveness. Comprehensive reporting functions, including range of custom reports, provide finance professionals with greater visibility into process performance and enable proactive efforts to improve operational performance. By developing accurate projections based on real-time insights into finances and operations, companies can ensure that payment schedules are enforced and performance objectives are being met.
The Softwareshould also incorporate features such as automatic invoice and payment reminders, payment plans, and automated dunning and blockage of sales orders to improve overall customer experience. This helps reduce and even prevent customers from past-due payments, as well as reduce any markdowns that may be necessary due to late payments. Moreover, various remote payment methods, such as online payments, mobile wallet, e-check and card payments, should be supported by the software to offer customers more payment options. With the integration of these payment methods, customers can easily access the software in the comfort of their homes, making payment more convenient and secure.
To ensure the efficient functioning of OTC Softwaresolutions, companies must ensure that the technology is being properly utilized and that processes are continually being monitored and assessed. Automating the OTC processes can dramatically reduce costs and streamline the order-to-cash process, allowing finance executives and their teams to focus on more important initiatives. By leveraging software and solutions, companies can significantly improve operational performance and enable better, more transparent financial planning.
