Maximizing Cash Flow With Cloud Software: Is Doing Without A Risky Proposition?
Cloud Credit Control Software
Many companies have come to rely on software-based order-to-cash management tools in order to reduce risk and maximize cash availability. On the other hand, many Finance Executives are hesitant to forgo manual processes for cloud-based solutions. While manual processing does have its benefits, there is considerable exposure to risk by neglecting automation of this essential task. The following looks at why the reliance on cloud-based order to cash software could make significant difference to companies cash flow.
Traditionally, companies have utilized manual processing to manage their order-to-cash process, involving manual data entry, document preparation, and approvals. In the fast-paced business environment, this can mean lost time by delaying the fulfillment of customers? orders, costing your organization both lost revenue and customer loyalty. Additionally, this process often involves manual entry of invoicing and payments data, with the potential for costly errors.
A cloud-based order to cash software eliminates the tedious manual processes that are used in manual processes. As such, data is efficiently collected and calculated in its entirety from the moment orders are placed. In each step of the order-to-cash process, the software is constantly monitoring to identify on-time payments and any lagging customers, helping to ensure that cash flow is immediate and accurate.
Without cloud-based software, your company lacks an efficient system to track customer credit history and approve orders at checkout. Invoices and payment applications are left open to miscalculations or inaccuracies, or risk not being properly monitored. Automation also allows users to set exceptions to be approved at different levels. Using cloud software to monitor your order-to-cash process provides detailed visibility into recurringBillings the status of accounts at any given time, and even paves the way for automated dunning of non-compliant customers.
An automated order-to-cash process can also enable your company to unlock financial liquidity. By using business intelligence and predictive analytics, you can create accurate forecasts of customer payment histories and effectively reduce the number of days of sales outstanding, or DSO. The result: improved detection and prevention of credit overextensions and increases in liquid assets.
Weighing the costs and benefits, it is clear that for both cost savings and enhanced business decisions, automated order-to-cash software is worth considering. Cloud software offers secure, automated and real-time access to data that manual processes simply cannot provide. Not to mention the valuable time savings from eliminated manual data entry and documentations. The bottom line: automating order to cash processes is crucial for optimizing companies cash flow.
