Risks Of Not Using Receivables Automation
AUTOMATED INTEGRATED RECEIVABLES PLATFORM
businesses, especially those involved in supply chains, need to ensure that orders, invoices and payments move quickly and accurately between buyers and sellers. Otherwise, the risks of financial losses increase significantly. The best way to avoid these risks is through the use of software for automated integrated receivables?specifically, order to cash software.
Without automated integrated receivables, companies experience an increased risk of slow order deliveries, late invoices and payments, lost orders, misplaced documents and incorrect customer data that lead to disputes, dissatisfied customers and potential financial losses. Moreover, manual processes can lead to high administrative cost of the process which may even exceed the cost of the software.
Integrated receivables can reduce the risk of errors, disorganization, and inefficiency. Receipts of sales orders and customer payments, invoices, and customer payments all arrive in one place, eliminating the possibility of orders and invoices becoming “lost” with incomplete information. This also ensures accurate data entry, reducing opportunities for manual errors, duplicate requests, and late invoice payments or cash flows. In addition, automated processes help with dispute or claim management, support for shorter payment terms and help lead to healthy accounts receivable balance.
If manual processes are maintained, organizations must maintain significant manual labor to handle the function of the accounts receivable. This can include significant time to review open invoices, identify errors and short payments, track customer payments and more. Furthermore, manual processes can lead to significant delays and errors when working with large number of customers.
With the automation of integrated receivable, finance departments can operate more quickly, efficiently, and securely. Additionally, automated integrated receivables can provide real-time view of receivables, cash-flow forecasting and analytics, which can be valuable metrics when trying to venture into new markets or expanding the business.
Overall, the use of automated integrated receivables through an order to cash software can significantly cut down the financial risks of an organization. By streamlining the process and removing manual labor, organizations are able to reduce the costs and errors often found in manually maintained receivable processes. The result is healthier cash flow, increased insight into accounts receivable, and an improved customer experience.
