Order-To-Cash Solutions: An Executive Guide
B2B ACCOUNTS RECEIVABLE SOLUTION
As starting point, it is important to make an informed decision when selecting solution for accounts receivable management. For executives, the first step to optimal results is ensuring that the order-to-cash solution being considered is compliant with regulations and meets specific business requirements. Having an understanding of the core functionalities of Order-To-Cash solutions is also necessary for any executive. These key functionalities include order entry, pricing, payment processing, discounts, collection, dunning, invoicing, receipting and fraud analytics.
When selecting solution, it is imperative that the software provider offers both reliable customer service and the ability to optimize real-time billing processes. Furthermore, the solution should include data management control and dashboards to monitor key performance indicators, such as customer trends, payment cycles, dunning and collection processes. Flexibility and scalability are also critical elements when evaluating solution.
Potential OptimizationsOnce an executive has identified and evaluated the necessary features and functionality of solution, there are number of steps which can be taken to maximize the impact of the order-to-cash cycle.
The first step is to establish standard approval procedure for all customer accounts. This process should include validation of documentation prior to the initiation of any payment processes, as well as providing the customer with timeline for approval. Additionally, it is beneficial to have robust claims management system in place to ensure accuracy and generation of accurate invoices and cash applicators.
An executive should also develop customized dunning strategy, tailored to their customer base, to allow for automated envelopement of late payment notices, as well as proactive collection efforts. complete rule-based framework is key to any dunning strategy. This ensures that late payments are addressed accurately and efficiently.
Finally, it is essential to implement an automated dispute resolution process that integrates with the accounts receivable system. This should be coupled with analytics to track disputes based on priority, ensure credit limit compliance and maximize the resolution of overdue accounts.
ConclusionAccounts receivable management is vital function of any order-to-cash framework. To maximize efficiency and optimize operations, it is essential that executives research and evaluate various solutions, to ensure that the selected solution meets their unique business requirements. With multifaceted accounts receivable solutions, organizations are able to leverage insights from order-to-cash data, reduce late payments and improve collection success. With the right order-to-cash solution, executives can create reliable platform for an effective and efficient accounts receivable management system.
