Maximizing Your Order To Cash Performance: The Risk Of Not Using Software For Dso Methods
Dso Methods
Order to cash (OTC) performance is an important KPI for any organization, representing critical junction between the sales and financial sides of the business. As finance executive, you?re likely keen to optimize your OTC process. To that end, the use of software for DSO methods (Days Sales Outstanding) could be great way to maximize efficiency and optimize the OTC performance.
At it is most basic, DSO software is collection of software tools used to optimize credit and collections management processes. This can be highly beneficial to an organization, providing automation, quicker time to resolution, improved visibility, and greater accuracy in managing customer accounts. However, oftentimes finance executives may overlook the advantage of such software and instead opt for manual processes. In doing so, there are real risks to OTC performance.
Excessive Delays in Resolution
Without DSO software to expedite the process, you may likely find yourself reverting to manual methods to address customer accounts. This could result in substantial delays in completing digital processes, from customer onboarding to collections. Such delays can result in backlog of accounts to manage and could threaten performance goals like customersatisfaction and cash flow.
Inaccurate Record Keeping
If manual methods have you relying heavily on spreadsheets to manage customer accounts, data entry errors can quickly compound, leading to inaccurate data. This can be challenging as poor record keeping could leave you unable to determine the status of invoices, facing difficulties in reconciling payments, and making it troublesome to monitor progress towards departmental goals.
No Scalability
Finance executives must always be looking at ways to minimize costs while still providing excellent customerservice. As more customers are added, you may find yourself constrained by manual procedures, facing struggles to quickly and cost-effectively respond to customer issues. Without automated solutions in place, it can be difficult to keep up as your customer base increases.
There’s no doubt that DSO software has earned its reputation for its ability to automate processes and make customer accounts resolution more efficient. Still, finance executives, who are typically heavily focused on performance metrics, may find the hard costs, like software implementation and maintenance, the more tangible factor, and instead opt for manual methods. However, the risk of not using DSO software for OTC performance could be substantial. Dealing with delays in collections, inaccurate record keeping, and scalability issues could quickly hamper your organizations bottom line. As finance executive, then, it is essential to weigh the cost of such software against the risks of not having it, as it could mean the difference between optimal OTC performance and sub optimal performance.
