Risk Of Not Adopting An Accounts Receivable Automation Solution
AR AUTOMATION SOLUTION FORRESTER
As finance executives face increasing pressure to improve the efficiency and accuracy of the order-to-cash process, there is clear need for the adoption of an accounts receivable (AR) automation solution. successful automation strategy can help companies reduce labor costs, streamline the collections process, and enhance service levels. While the benefits are immediately observable, there are also important risks associated with not utilizing an AR automation solution that must be taken into consideration before deciding to maintain the status quo.
Without an AR automation solution in place, companies run the risk of manual errors or delays leading to non-payment. These manual processes may also fail to properly identify discrepancies, resulting in inaccurate postings and untimely invoices, leading to further errors and miscommunication. This can all have significant effect on cash flow and the customer experience.
The potential for manual errors is further complicated by constantly changing customer and market environments. Without system in place to keep up with these changes, businesses are likely to suffer from lags in service and other performance issues. Further, when relying on manual application, companies must maintain large and specialized staff to manage data entry, invoicing, and communications. This can lead to additional costs from being overextended and it may impede their ability to quickly and effectively respond to customer inquiries and requests.
These risks increase exponentially for B2B and B2C companies with large and diverse accounts receivable portfolios. Without robust AR automation solution in place, businesses are unable to take advantage of the technology-driven processes and performance tracking capabilities that program such as order-to-cash requires. As result, they may be unable to capitalize on opportunities to increase profit margins and optimize profits over time.
To further compound these risks, not having an AR automation solution can put businesses at competitive disadvantage as they may find themselves unable to respond quickly and accurately to customer demands and compliance requirements. As the industry continues to evolve, companies must be able to meet the demands of e-commerce, compliance, and customer service. An AR automation solution with integrated payment and communication mechanics is the only way to ensure that companies can meet those demands in timely and efficient manner.
Ultimately, the potential risks of not utilizing an AR automation solution far outweigh the potential benefits. This underscores the need for companies to develop and maintain successful strategy for incorporating an automation solution into their order-to-cash processes. By doing so, businesses can achieve improved efficiency, minimized costs, and marked competitive advantage.
