Reaping The Benefits Of Software For Enhancing Accounts Receivables Disputes
DISPUTES IN ACCOUNTS RECEIVABLES
When it comes to achieving operational effectiveness, software for managing accounts receivables (AR) disputes is essential for every business. To that end, this article is focused on how to evaluation and implement order to cash software in order to optimize the financial performance and reduce the strain of manual operations in the accounts receivable (AR) process.
To start, exploring the business impact of an effective dispute management process is key. For companies on their AR automation journey, handoff processes between accounts receivables, finance and sales departments can make managing and resolving disputes time-consuming process. Although it can be difficult to measure the direct impact that automation of the AR dispute process has on the bottom line, businesses should be aware of potential financial implications related to manual dispute resolution processes. Manual dispute resolution processes can cause an increase in manual time and risk of human error which then leads to lower efficiency and higher spending.
An automated order to cash (OTC) solution can help streamline the dispute process, reduce administrative overhead and help businesses improve their collections operations. The automated OTC solution comes with several advantages to help businesses optimize their dispute resolution process.
First, automated OTC solutions makes it easy for companies to present collected information in an easily understandable way to customers. OTC solutions provide companies with the ability to retrieve customer-level dispute information quickly and displays dispute history associated with customer in comprehensive view. This eliminates the need to jump between different systems to calculate and attribute dispute amounts, thus saving companies time and reducing the likelihood of miscommunication.
Second, automated OTC solutions can help businesses identify dispute themes or root causes and monitor dispute patterns. For example, businesses can set up certain rules and thresholds for dispute management to identify the most frequent dispute theme and generate trend reports. During the process, OTC supplies contact information for the dispute?s owner, thus facilitating collaboration between the team handling the dispute and the customer.
Third, automated OTC solutions increase operational efficiency in the dispute resolution process. This is especially true for large companies with multiple subsidiaries and customers at different locations or different countries. centralized dispute management system with real-time visibility can simplify the process of providing dispute resolution process across multiple regions, while helping to coordinate time-sensitive actions such as shipping and invoicing.
Finally, automated OTC solutions provide more accurate tracking and billing reporting, which increases the likelihood of collecting invoices on time and predictably. These solutions provide businesses with the ability to quickly identify and resolve disputed invoices thus helping to reduce the time taken to collect payments.
In conclusion, in order to ensure operational performance, it is essential to maximize the potential of OTC solutions. Implementing an OTC solution can help maintain customer relationships through clearer communication and improved dispute dispute resolution process and at the same time, improve financial performance through automating the order to cash process.
