Order To Cash Automation: Streamlining Month End Accounting For The C-Suite
ACCOUNTS RECEIVABLE AUTOMATION FOR MONTH END ACCOUNTING
Accounting for cash flow is critical part of corporate financial strategy, and many Executive teams rely on well-tuned Order to Cash (OTC) cycle as means of improving balance sheets and expanding their businesses. For those executives that work in the finance department, sound solution for accounts receivable automation can be boon when it comes to streamlining month-end accounting.
Materials and PreparationIn order to ensure that the OTC cycle runs smoothly, organizations should begin by gathering the necessary materials. These include up-to-date records of invoices and other financial documents, comprehensive customer information, and any payment processing documents that have already been generated. Additionally, executives should ensure their organization has an established accounts receivable automation system that has been approved for use by their respective finance departments.
The OTC CycleOnce all of the necessary materials have been gathered, financial teams can begin the OTC cycle. This process generally starts with an invoice generated by the company requesting payment from its customer. Invoices can be augmented with digital signatures, payment terms, and other pertinent information in order to ensure quick and efficient transfer of money or goods.
Successful invoices can then be moved onto the processing stage, in which payment data is securely stored and monitored. This helps financial teams track the progress of payments, request disputes on any discrepancies, and actively survey the payment status at any given time. Many organizations choose to use automated software solutions to better optimize this process and reduce manual input.
End-to-End SolutionsAutomated solutions for accounts receivable are designed to provide an end-to-end, self-service approach to payment processing. These systems typically allow for customers to access and pay their invoices online through secure portal, in which all transactions are logged and reported. Additionally, automated solutions generally leverage predictive analytics capabilities in order to alert finance teams when customer payment terms are overdue, thus ensuring all due payments are received in timely manner.
Closing Out Month-End AccountingThe final step in the OTC cycle relates to the usage of all gathered documents and financial data for month-end accounting procedures.Automated solutions for accounts receivable typically provide cash-flow visibility and real-time dashboards for finance teams, allowing for rapid resolution of invoices, even across multiple currencies. This is turn helps to close out month-end accounting quicker and with greater accuracy and precision.
ConclusionFor C-Suite executives working in finance departments, successful Order to Cash cycle depends on timely and accurate accounts receivable automation. By properly gathering the necessary materials and utilizing automated software solutions, finance teams can ensure that the OTC cycle runs smoothly from start to finish, with decreased manual input and improved reporting capabilities. The resulting expediency of month-end procedure completion allows for greater productivity, accuracy, and financial decision-making.
