Optimizing Order-To-Cash Automation For The Busy Executive
DAILY SALES OUTSTANDING
With the demands of todays enterprise landscape ever more complex and pressing, ensuring smooth, efficient order-to-cash (OTC) workflow operations has become extremely relevant for executives charged with steering financial performance. This is especially true in instances where there’s heavy distinction between order entry, billing, and payment directed activities, which creates consistent volume of sales outstanding and must be managed.
Thankfully there are several automation solutions to efficiently address the accounting portion of order-to-cash, ultimately resulting in improved bottom-line performance, manpower optimization, and ceaseless accuracy in financial reporting. To quickly get started, the following guide is to provide executive users with tangible knowledge on leveraging automation for the most advantageous account receivable management of those daily sales operations.
Step 1: Acquire an Automation Platform
Given the decisive need for streamlined order-to-cash process, an automation platform is logical first step. The objective is to find solution which best suits the unique needs of the organization, as there is no single one-size-fits-all product, as various packages and suppliers need to be evaluated. Selection of cloud-based platform, recommended for speedier, more secure and advanced features, is of keen importance.
Step 2: Assign Ownership and Permissions
Due to the significance of cost-effectiveness, it is both prudent and necessary to designate team or individual within the organization to manage the automation system and its attendant processes. This individual should be informed of best practices and equipped with the competency to troubleshoot as needed. Furthermore, thorough control of access levels and permissions, with default access that covers only pertinent departments, is crucial to both reduce oversights and secure security tighter.
Step 3: Establish System Configuration
The important parameters of payment terms, egress from the Credit Department, assignees responsible for payment and compliance, rates of exchange, taxation, discounts, and so on all have to be accounted for in order for the system to be properly configured for automating. This also includes archiving of current financial contacts, setting collection goals, recording reasons for non-payment, and other necessary specifics for smoothing out the OTC process.
Step 4: Define Reviews and Approval Process
The automation system should be programmed to incorporate the organizations’ internal review and approval process of customer orders. This should include necessary checks such as financial revisions and reconciliations, and clearly designates who is responsible for the security and validity of each step. This part of system configuration is especially important to avoid errors or omissions covering fluctuations in pricing and potential discrepancies when contracts or agreements might vary or be out of date.
Step 5: Implement Closed-Loop Communication Process
Having properly configured the system to adhere to internal review and approval the automation process is almost complete. At this point in time it is essential to ensure all activities from the point of customer order, to billing, and then to collections be continually looped process. Engaging connected digital tools and applications makes it easier to create system that improves the customer experience while maintaining order-to-cash efficiency.
Step 6: Monitor and Analyze Results
The order-to-cash automation system must be constantly monitored, measured, and critiqued. Having summarized information on customer accounts, collections performance, and payment reconciliation processes makes it easy to quickly identify trends and areas needing adjustment or improvement. The mechanisms by which this is achieved will differ by platform, but most automation solutions incorporate analytics tools and external system integrations to make management of the order-to-cash process more convenient.
Conclusion
The implementation of an effective automation platform for order-to-cash operations translates to more efficient and successful financial operations. The steps provided in this guide give the executive user insight into leveraging automation for the most advantageous handling of daily sales outstanding management. By ensuring the preceding steps are taken, any organization can look to improvement in terms of customer satisfaction, financial performance, and manpower optimization.
