Successful Automation Of Accounts Receivable For Cpa: Unlock The Power Of An Order To Cash Solution
AUTOMATING ACCOUNTS RECEIVABLE FOR CPA
Financial executives and careers in accounting are typically tasked with ensuring the accuracy of cash flow and billing. This complex process that involves accounts receivable. Processing invoices and accounts receivable manually can be time-consuming and error-prone endeavor. Additionally, large companies may have accounts payable spread out to many vendors, providers, and customers, making the process especially arduous.
As automation and artificial intelligence become more available to enterprises, businesses need to evaluate the merits of integrating these technologies into their accounts receivable. Utilizing an order to cash solution can enable the automation of accounts receivable and ultimately increase the efficiency of accounting processes.
The following step-by-step guide is designed to help evaluate and select an order to cash solution.
Step 1: Create an Accounts Receivable Automation Needs AssessmentBefore the process of selecting an order to cash solution can begin, it is critical to create an accounts receivable automation needs assessment. This should include analyzing the current AR process and documenting any manual steps and processes completed in the order to cash cycle. Workflows, documentation and best practices should be characterized and considered in this assessment.
Step 2: Identify Missing FeaturesOnce the existing process is documented and analyzed, it is useful to identify the areas that could benefit from automation. Identify the missing pieces of the puzzle and gaps in the process. Identifying the pain points of existing manual processes can help prioritize areas of the Accounts Receivable process, which should be automated.
Step 3: Analyze Existing IT InfrastructureIn order to determine which type of order to cash solution is most suitable, it is important to analyze existing IT infrastructure to determine the capabilities that may already be in place. Any current solutions in place that automate and streamline the process should be considered.
Step 4: Utilize Industry ResourcesResearch the market and evaluate the best solutions available. Many industry associations, businesses and organizations provide resources regarding market trends and new technologies, which can be leveraged to identify solutions that are well-suited to the needs developed in step 1.
Step 5: Collect Vendor Options Ask current vendors if they provide order to cash solutions, if they do not, ask if they know of any vendors who might. Additionally, research third-party vendors and collect list of possible vendors who could provide order to cash solutions that best fit the needs of the business.
Step 6: Ask for ProposalsOnce list of vendors has been collected, issue request for proposal and solicit bids. This should include detailed description of the needs created in step 1. The responses to these requests should provide possible models, customization and implementation of the solution.
Step 7: Analyze and Compare BidsAccording to the needs previously defined, analyze and compare the bids from the collected vendors. Consider not only the pricing but also the benefits and features that the solution may provide such as scalability, integration and time-saving capabilities.
Step 8: Select the SolutionWith all the available offers analyzed and compared, select the order to cash solution that best meets the automation needs developed in step 1.
Step 9: Plan and ImplementHaving selected the ideal order to cash solution, plan and implement the changes necessary to ensure that the software is properly integrated and utilized. This may involve dedicating personnel and ensuring that the right hardware is in place to run the software.
Step 10: Track and MeasureMonitor the effectiveness of the solution. Develop metrics to measure the outcomes. Track the performance of the solution to ensure that it is meeting the desired goals and objectives.
Utilizing an order to cash solution can be powerful way to automate accounts receivable. The above steps are designed to provide guidance on the process of selecting such solution. With thoughtful consideration of needs and due diligence in the research process, suitable solution can be chosen to streamline the accounts receivable process and increase efficiency.
