Risks Of Not Utilizing An Order To Cash Automation Solution
AR MANAGEMENT SERVICE
In spite of the increasing demand for automation in order to cash (OTC) processes, many finance organizations continue to rely on manual, error-prone methods, exposing themselves to multitude of risks. This article seeks to outline the detrimental impact of ignoring the need to switch to an automated OTC solution and its associated benefits.
Overlooking the move to OTC automation can result in host of problems, leading to detrimental effects on organizational performance. Across the globe, OTC automation is rapidly becoming the norm, and organizations without it at their disposal run the risk of ?falling behind? their competitors. Primarily, organizations can if not utilizing an automated OTC solution are likely to suffer from diminished customer service levels. Manual processes are slow and inefficient, resulting in cash cycle processes that are slower than those of more advanced competitors. Furthermore, manual conversations add an additional layer to the process, as documents take significant amount of time to be shared, which can lead to extended DSO and delayed payments.
Moreover, the manual process of sharing documents is subject to multitude of errors, leading to disputes and incorrect invoices, all of which can add operational costs and erase profits. Accuracy is also major issue; human errors can cause discrepancies that require extra time and resources to be put into, thus taking away from the organizations ability to focus on activities with higher ROI, such as strategizing and customer acquisition.
Thirdly, without an automated OTC system, organizations do not have access to data-driven decisions. OTC automation can access and trigger data-driven insights based on data points extracted through the system, complemented by graphical models and dashboards. This can result in real-time cost savings, real-time views and predictions, and improved control all of which are yet unimaginable using manual processes.
Furthermore, OTC automation can result in improved cash forecasting, resulting in more timely decisions. Also, automated OTC systems will streamline day-to-day transactions and eliminate manual transactions, allowing finance teams to do more with less time spent. Moreover, it eliminates the need for manual data entry and eliminates the need for piles of paper, promoting more ?green? finance department.
In essence, without utilizing and Investing In an automated OTC solution, Organizations are Missing out on tremendous opportunities risks associated with profitable long-term growth, cost savings and operational efficiency. Investing in cloud-based OTC software can pave the way for more comprehensive insight into payments and invoicing cycles across the globe, unlock valuable process-based insights and proactively mitigate potential risks associated with manual OTC processes.
