Streamline Your Order To Cash Cycle With An Electronic Invoice Portal
ELECTRONIC INVOICE PORTAL
The efficiency of businesses has been revolutionized in the modern world by technology, and an invoice portal is one such technological system that is increasingly becoming fixture in many successful companies. From C-Suite executive’s perspective, the purchase-to-payment process, or the order-to-cash cycle, is of utmost importance for business as it involves the very financial core of the organization. Streamlining this process through an electronic invoice portal can provide increased speed, efficiency, and accuracy to the accounts receivable process, drastically improving the financial stability of the enterprise.
This step-by-step guide will help C-Suite executives and professional that work in the finance department to understand and use solution for the electronic invoice portal and purchase-to-payment process, to ensure that their Order to Cash cycle runs smoothly and with the least risk.
Step 1: Set Up an Electronic Invoice Portal
The first step is to ensure that all of the necessary parties involved in the invoice process are able to access digital portal. This portal should be uploadable, managed and hosted securely by the organization. The portal should be configured and customized to the requirements of the enterprise.
Step 2: Agree on the Approval Process and Payment Terms
An important part of the order-to-cash cycle is the approval of invoices. Different members of the organization can have different roles; for example, C-Suite executives can approve invoices with special discounts or set up budget notifications. It is necessary to configure the portal to the approval process in place and to the payment terms decided by the company.
Step 3: Configure Connectivity to Accounting Systems
The electronic invoice portal should be configured to the accounting systems of the organization. This allows for data to be extracted from systems and be available to be accessed by users when they log into the portal. Connections to other systems such as customer?s portal are also important to ensure the necessary information can be exchanged.
Step 4: Generate Automated Invoices
The invoice portal should be configured to automate the generation of invoices. Automation reduces the manual effort labor required and also decreases the possibility of errors. The system should be able to generate standardized invoices with all the required information that can be sent directly from the portal.
Step 5: Facilitate Automated Send-Out and Receipt
Softcopy invoices need to be sent to the customer for their approval and hardcopy for received by the customer for further action. The organizationshould have an automated or semi-automated process in place to support sending out the invoices, which reduces the need for manual labor and chances of error.
Step 6: Validate Collected Payments
When an organization receives payments, they need to validate these payments in order to make sure they were received correctly. The invoice portal should be used to receive, track and record payments. An automated or semi-automated process for reconciling received payments is also recommended for higher accuracy.
Step 7: Need for Effective Reporting
The Order to Cash cycle requires effective reporting in order to allow for insights into the performance of the business. The portal should be configured to generate the necessary reports to provide C-Suite executives, and those in the finance department, with the necessary information in order to make decisions regarding the business? performance.
Conclusion
An effective order-to-cash cycle is essential for the success of any business, and an electronic invoice portal is an effective way to streamline the process. This guide walks through the steps that need to be taken in order to ensure that successful Order to Cash cycle is established within the given organization. With these steps in mind, C-Suite executives and finance professionals will be able to successfully configure and use the electronic invoice portal to efficiently handle their payment processes, improve their bottom line, and further ensure their success.
