Order To Cash Solutions: A Guide For C-Level Executives
MANAGEMENT OF WORKING CAPITAL CASH
As chief executive tasked with overseeing the management of working capital, you understand the power of proper process implementation. From order fulfillment, to cash management, and even to customer onboarding there’s lot to manage in the realm of Order to Cash operations. This guide seeks to provide C-Level Executives with comprehensive understanding of the complete Order to Cash Solution.
The Order to Cash process encompasses many aspects of business operations, and each requires varying levels of transaction and financial activities. To facilitate streamlined Order to Cash process, an effective Solution needs to integrate customer payment acceptance, invoicing and tracking, cash collection and reconciliation, and customer onboarding. Below are the steps outlined to assist you in harnessing the power of Order to Cash Solution:
1. Establish customer onboarding
The first step in utilizing an Order to Cash Solution is to establish customer onboarding. This includes setting up customer accounts with valid payment information, customer preferences and invoicing guidelines, among other customer-specific data. By doing this, the Order to Cash Solution can effectively track orders, automate customer payments, create invoices, and enable customer self-service.
2. Review payment acceptance options
To ensure customers’ payment preferences are met, it is important to review payment acceptance options from within the Solution. Cash, credit, and ACH are the three primary payment acceptance methods, however depending on the Solution, physical payment methods such as checks, prepaid cards and money orders may also be accepted.
3. Set up invoicing preferences
Before setting an invoicing system into motion, C-Level Executives should set up preferences pertaining to the type of invoice (electronic, paper or both), the invoice format, and the frequency at which invoices will be sent. Setting up these preferences in the Solution will provide consistency while expediting the process and streamlining business operations.
4. Automate order fulfillment and tracking
To guarantee an efficient process, it is important to automate order fulfillment and tracking. This can be done through integration with an existing order management system, or by setting up customer order tracking system within the Order to Cash Solution itself. Different levels of tracking can be established based on customers and their associated preferences, which helps ensure orders are complete and accurate and customers receive what they require.
5. Integrate cash collection and reconciliation
Integrating cash collection system with the Order to Cash Solution provides the ability to track customer payments and reconcile those payments with outstanding invoices. By doing this, Executives can effectively monitor customer payment activity and ensure all payments are collected in full.
By incorporating these steps into the Order to Cash workflow, C-Level Executives are able to harness all of the features associated with the Solution. This can help streamline the Order to Cash process and increase customer satisfaction, while increasing their return on investments and reducing the cost of operations.
