Simplifying The Order To Cash Process: A Guide To Automating Accounts Receivable
SOFTWARE FOR ACCOUNTS RECEIVABLE
Accounts receivable (AR) is an essential element within the order to cash process. With the right software, companies can gain control over their accounts receivable processes, while reducing manual efforts and increasing efficiency. In this guide, we’ll delve into the fundamentals of an AR software solution and how it can help to optimize the order to cash process.
At the core of any AR software solution is data. AR software solutions enable companies to capture customer data and create records of orders and payments, eliminating the need to store paper and manual information. Once captured, the data can be used for range of purposes and applied to other analytical applications. Automated data management also means all relevant customer information is available to the accounts receivable team in one centralized place, eliminating time loss and errors caused by cross referencing paper documents.
To facilitate the tracking of customer records and payments, AR software also supplies companies with real-time visibility and reporting. This means they can review the current state of their receivables at any given moment. Instant insights provided by AR software allow financial departments to quickly identify problems and take the necessary action to prevent delays and cash flow disruption.
Beyond the collection and processing of data, the right AR software can provide companies with additional benefits, such as automated customer notification. Automated notifications save businesses time, while also ensuring customers remain up to date on their invoices. Indeed, notifying customers of due payments can serve to reduce the pressure of collecting overdue payments, and even save customers from additional late payment fees.
In addition to its ability to organize and track customer records and payments, comprehensive AR software solution can also help with aging reports and the management of customer credit limits. Aging reports provide financial department with an overview of which customers have receivables owed, helping them prioritize tasks and respond to payment problems quickly. On the other hand, credit limits can be used to increase customer loyalty and establish trust. Indeed, custom credit limits can be set on customer-basis based on business’ risk threshold.
In short, an AR software solution has the potential to streamline the order to cash process. The right software can provide financial teams with an overview of customer records and payments and help them to identify any issues that may come up. Automated notifications, aging reports, and customer credit limits are also essential elements any AR software can provide. Implementing an AR software solution can help to boost cash flow, reduce spending, and increase customer satisfaction.
