Risk Analysis Of Nonuse Of Software For Cloud-Based Accounts Receivable
CLOUD BASED ACCOUNTS RECEIVABLE SOFTWARE
With company resources spread thin, in the current business climate, using cloud-based accounts receivable software for order-to-cash operations is fast becoming the new normal. Yet, there are drawbacks in not utilizing software automation, both from time and risk standpoint, that should be considered before forgoing such cutting-edge solutions.
First and foremost, the decision to forgo automation software for order-to-cash operations brings heightened risk of clerical errors, an increase in manual paperwork, and heightened risk of inaccurate invoicing. Without the robust support of software arms such as those specializing in accounts receivable, companies can quickly find their process awash in paperwork, hindering the ability to verify data, reconcile accounts, and consistently deliver accurate invoices to customers on time.
This timeline-sensitivity increases not only the burden of cross-checking against customer data but also the stress of employee’s tasked with the job of effectively tracking and organizing customer records. Because person-power resources are essentially maxed out, companies will inevitably resort to disregarding invoicing data and discrepancies, including the now common issue of notifying customers of their overdue payments or issuing citations for nonpayment.
Furthermore, software automation for accounts receivable saves businesses time by providing robust platform for tracking customer orders and accounts, such as suggesting payment plans and reminding customers to fulfil payment. Relying on the employee to do such tasks can result in multiple overlooked opportunities, only to be revisited at the employee’s discretion, assuming they remember.
In sum, companies should assess the relative merits to their operations in utilizing cloud-based accounts receivable software when consolidating their order-to-cash operations. While the capital outlay of implementation and maintenance may appear costly, such investments may be outweighed by time savings, data accuracy and heightened resource efficiency in the long-term.
