Optimizing Order To Cash Processes: Risks From Not Using Automated Cash APplication & Tracking Software
AUTOMATED CASH APPLICATION & TRACKING
As finance executive, taking advantage of automated solutions is vital to optimize order to cash (O2C) processes and maximize resource allocation. Manual cash application and tracking involve tedious and time-consuming process, making it impractical and inefficient. Moreover, it is accompanied by several substantial risks that finance executives must consider when deciding whether to take the automation route.
One core risk of not automating the cash application and tracking process is accuracy. Data entry errors can result in misallocated payments, compromising not only the data-gathering process but also integrity. Automation mitigates these potential inaccuracies via verifications at every step. Furthermore, it eliminates the need for double-checking, allowing the reduction of human interventions and consequent costs.
A further risk pertains to security. Due to the high level of data sensitivity and its intricate transfer process, manual accounts receivable (AR) transactions may be vulnerable to risk to its security and privacy. Automated software solutions, on the other hand, come with impressive security measures such as data encryption and multi-step authentication levels, presenting much safer payment process.
In addition to accuracy and security risks, manual cash application and tracking poses potential delays. Human interventions are inherently slow, dealing with cumbersome paperwork, running reports, verifying documents, and more. Automation, conversely, promptly performs the same process?without having to repeat any steps if mistakes were made.
Finally, manual cash application and tracking likely misses any special requirements such as discounts or hard-coded indicators. Automated O2C software, in contrast, easily scans and adds this to remittance data. It further eliminates the need for manually wading through emails, faxes, and other documents.
In conclusion, the use of automated order to cash software is paramount to finance executives to ensure accuracy, data integrity, security, and promptness, while avoiding the perils of inaccuracy, delays, and disregarding special requirements. Subsequently, this will optimize the order to cash process and maximize resource allocation for the finance executive.
