Risk Of Forgoing An Automated Dunning Tool
AUTOMATED DUNNING TOOL
Withoverdue receivables are one of the most common challenges finance executives face, they should consider the risk of shying away from an automated dunning tool. By utilizing software solution, not only can productivity rise and costs be significantly lowered, but working capital gaps can be deepened by faster collections and quicker resolution of disputes.
Companies can benefit from automated dunning tools when it comes to managing their day-to-day order-to-cash process. Updating credit terms and correctly setting collection thresholds are paramount components of financial operations. More often than not, organisations are overwhelmed with manual processes, whether related toDun Bradstreet reports, legal holds, or the lack of structured debt collection policy. By automating such processes, issues can be detected and resolved quickly in order to secure investments and ensure steady cash flow.
The downside of overlooking such technology is the time and money lost due to unpaid invoices that are not given the proper attention. Companies can quickly find themselves stuck in an endless cycle with no way of getting out. Even worse, fees or fines may be imposed on accounts that do not fall in compliance with credit terms. To keep the business running smoothly and avoid serious legal repercussions, it is essential todetermine the right course of action.
Investing in an automated dunning tool requires initial effort and change in daily working practices, but the benefits it ensures will certainly outweigh the risks. This is especially true since software designed for order-to-cash can not only streamline the process, but also provide digital documents, track invoice history, andallow for third-party extensions. As result, payment monitoringbecomes more effective, cash visibility is ensured, and workforce productivity drastically increases.
In summary, finance executives should not be reticent to plan for an automated dunning tool for their order-to-cash process. While this may require certain degree of change and effort, the positive outcomes are indisputable. Doing so will spare them time and money, whilst securing relationships and investments with customers. Moreover, the compliance aspect of receivables management will no longer have to be worrisome as automated dunning tools ensure adherence to procedures.
