Securing Control: The Dangers Of Neglecting ARAutomation
BEST AR AUTOMATION SOFTWARE
When implementing an electronic order-to-cash process, key step in reducing operational costs, compliance risk, and increasing efficiency is weaving in an accounts receivable (AR) automation solution. But, failing to incorporate this process can result in issues such as cash leakage, loss of compliance, and sub-optimal customer service. As Finance Executives grapple with strategic choices concerning the software options available, they must carefully consider all the risks involved in shirking automation.
What At Stake?
businesses that ignore AR automation stand to lose capital gains and earn decreased profits. By circumventing automation, organizations miss out on opportunities to streamline operations, leading to oversights and lack of complete visibility throughout the order-to-cash cycle. Additionally, foregone are the prospects of eliminating human error and increasing the accuracy of customer account status and customer payments. Moreover, most AR automation solutions comprise features such as data capture, document management and workflow, designed to minimize order defects and minimize business disruption, but without automation, these advantages are all for naught.
Bolstering Compliance Regulation
Without automation, organizations fall prey to compliance snafus. Regulatory entities such as the Federal Financial Institutions Examination Council (FFIEC) look for signs of competent customer relationship management and companies trying to maintain their record of financial integrity. As such, the cost of complying with regulations increases as opportunities for fraud arise and customer service is impaired. AR automation can provide digital solutions, such as automatic recording and reporting, to bolster governance and compliance.
The Need for Speed
Considering customer satisfaction, leaving AR automation out of the order-to-cash process can have adverse consequences. Without automation, organizations must hunt down sales orders, invoices, customer payments, and other financial documents and manually process them. By employing automation, customer payments are quickly processed, helping them avoid any potential charge-backs and therefore restore their cash flow faster. Faster processing means fewer customer inquiries and improved customer satisfaction, thus increasing the likelihood of repeat purchases. Unhindered cash flow also increases the speed of day-to-day operations, thus improving the overall customer experience.
Put Loss in the Rear-View
Given the tangible risks of foregoing AR automation, Finance Executives looking for an effective order-to-cash software solution must bear in mind the possible consequences of discounting these automated processes. Automation stands to empower organizations by augmenting customer service, mitigating compliance risk, and boosting financial performance. Therefore, those in charge of strategic decisions must not slight the value of automation in order to keep their competitive edge.
