Risk Of Non-Automated Collections Software For Orders To Cash
AUTOMATED COLLECTIONS SOFTWARE EMAIL AND MAIL
The risk of relying on manual processes for collections in order to satisfactorily carry out order to cash operations is multifaceted and can cause peaks in dissatisfied customers and uneven cash flow. The resultant impact on the organizations relationships, reputation and bottom line has been explored in this report.
For effective cash collections, organizations require sustained and organized plans to track accounts on payment due dates, follow up, and provide debtors with transparency on their payments. As vast volumes of data need to be processed, manual methods quickly become tedious, creating risk of delays and potential errors. Companies who fail to automate their collection processes run the risk of derailing the whole process and negatively affecting their cash flow.
Without an automated collections software, accounts receivables personnel often find themselves bogged down with attempting to reconcile chaotic accounts and manually send and respond to emails. This repetitive, laborious process can cause personnel to become overwhelmed and impede on the effectiveness of the collections process, resulting in limited efficiency and high cost of human resources and time invested in receiving payments from the customers.
Aside from process inefficiencies, other underlying issues and risks can unfold, leaving organizations exposed to heavier consequences and financial depression. Unsecured and unMonitored automated server systems are fraught with security risks and data breaches, costing organizations criminally large fines and loss of customer trust. Furthermore, organizations that utilize manual collections processes often extend payment terms to customers with no protection against delinquent accounts or credit risk. This can lead to string of inconsistencies and widespread failure to collect payments in full or on time.
In contrast, an automated collections software offers powerful, secure solution that does not require large amount of manual effort and helps to achieve more efficient collections process. Automated email and mail notifications can be used to alert customers of overdue payments and drastically decreases turnaround times. Furthermore, collection solutions can be tailored to the organizations security and compliance needs. For example, adding lien protection to guarantee payment on delinquent account or leveraging credit check protection to assess customer credit risk.
By implementing automated collections software geared towards order to cash operations, organizations can minimize the risk of process inefficiencies and protect against potential delinquent accounts and security concerns. This can result in greater customer satisfaction by providing transparency and ease in the collections process and yield greater degree of control over their cash flow. Ultimately, automated collection solutions grant an organization with improved flow of cash, better customer relationships, improved compliance posture and overall economic growth.
