Risky Business: The Impact Of Not Utilizing Automation Software For Order To Cash Processes
AR AUTOMATION SYSTEM INTEGRATORS
Business automation is an essential part of modern efficiency and success. From payroll to production, automation helps enterprises keep competitive by reducing time, money and manual effort expended to accomplish tasks. In the order to cash process, however, there are additional risks associated with not automating software, mainly those related to fees, errors, and cash flow.
When it comes to fees, manual order to cash processes are not always cost-effective and may be subject to human error or procedural inconsistencies. Errors in the order to cash process, such as incorrect accounting, incorrect customer contacts, or lack of order data on invoices, could lead to costly mistakes. Furthermore, the executives responsible for managing the process may overlook elements, such as customer credit checks, payment terms, and fee amounts, resulting in additional charges.
CFOs and other executives responsible for their organizations budgets should also be aware of their organizations cash flow. Late payments result in late charges, reducing overall cost savings. In manual processes, there is often tendency to send invoices late, as the payment departments need more time to process the incoming payments. Inaccuracy in the process can also lead to additional back-office costs while attempting to correct errors, and manual processes often lack the accuracy essential to ensuring timely payments.
The inclusion of automation software reduces manual effort and the probability of human errors. For example, such software tools often provide easy access to the customer’s entire financial data, increase the accuracy of billing, and can even alert execs when invoices are overdue. Such features provide CFOs with total control and stabilization of the organizations order to cash process.
In conclusion, an automated software system integrated into an organizations order to cash process helps ensure accuracy and timeliness, as well as cost savings. It is important for executives to consider the potentially significant risks of not taking advantage of automation software for order to cash process integrations.
