Mitigating The Risk Of Not Utilizing Order To Cash Automation Software
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As CFOs search for strategies to maximize efficiency, they must recognize and embrace the potential of leveraging automation software. As finance executives weigh the associated costs and benefits, they must have clear understanding of the risks involved with not utilizing order to cash (OTC) automation software.
When processes are unsupported by automation, companies lose out on valuable time, as well as missing out on the cost savings and increased efficiency it provides. Initial process efficiency savings can be quite high when companies go from manually handling OTC transactions or inconsistently tying together various handwritten notes or spreadsheets, to utilizing comprehensive automation systems. Automating the OTC procedure removes the need for manual intervention with its associated costs. Additionally, OTC automation software provides finance teams with visibility into customer contracts, easier tracking of payment status and the generation of required reports; all of which is major advantage to the finance team.
Furthermore, OTC automation software provides processes and controls that minimize leakage and errors. Manual intervention introduces opportunities for inadvertent and intentional errors. The integration of automated technologies engineered to manage OTC processes allow organizations to streamline and better manage their customer charging data. Such governance over the data provides CFOs with assurance that the invoices generated are accurate, the payments received are correctly analyzed, the accounts are balanced correctly, and customer records remain up-to-date.
In addition, automated systems can predict customer behavior patterns, enabling proactive decisions and maximizing the probability for payment. Enhanced functioning helps further enhance process automation, as manual backups are eliminated. OTC automation software also delivers opportunities for improved collaboration with by streamlining customer payments information, like bank statements and statements of credit, thus providing better visibility into current customer balances. Moreover, detailed analysis of customer financial standing allows the finance team to assess customers for potentially extended credit limits. When these business intelligence gains are placed in the hands of CFOs, operations become more efficient; improving the bottom line.
The risk of not utilizing automation is the potential for data inaccuracies, missed payments, and potential regulatory non-compliance. Even single input error can cause transactions to be incorrect, missing or delayed, which can lead to customers? dissatisfaction and lost revenues. To add to the uncertainties of manual, non-automated processes, lack of compliance can ensue. Potential violations expose organizations to fines and penalties, often resulting in significant legal and reputational costs and diminished customer relationships.
CFOs searching for tactics to reduce costs, while increasing the efficiency of their operations should consider the risk of not utilizing OTC automation software. All the tangible and intangible benefits, such as enhanced customer engagement, accurate data, improved visibility and automated operations, can be quickly and effectively realized with the implementation of an automated OTC system. The aptitude to identify and capture savings, minimize discrepancies and errors and to minimize the risk of not being compliant, all make for compelling case for the CFO to prioritize the implementation of automation software.
