The Costs Of Failing To Automate The Order To Cash Process
AR CREDIT APPLICATION PROCESS
Organizations that fail to automate the order to cash process are missing out on wealth of cost and time savings. There is also notable risk associated with not utilizing software for accounts receivable credit application processes, especially when it comes to the order to cash cycle. Without reliable solution in place, businesses can suffer from poor customer service, increased credit obligations and missed payment deadlines, which can lead to financial losses, significant late fees, and legal waiver of rights.
Not automating the order to cash process can be an incredibly costly mistake for any organization, and it is even worse if you take into account the other associated inefficiencies. Most notably, in manual processing, there is lack of visibility over receivables, payments and customer invoicing, resulting in an inability to track ageing of the accounts. Having reliable solution in place for accounts receivable management can drastically minimize errors and provide management with much clearer view of the accounts.
Assuming businesses decide to automate the order to cash process and implement robust accounts receivable software, there are quite few advantages. Firstly, order to cash management solutions provide vastly improved level of accuracy in terms of tracking, auditing and verifying invoices and payments. This can be beneficial in maintaining open lines of communication with customers, thus minimizing potential missed payments and any subsequent risks. Furthermore, most accounts receivable software come with range of payment collection tools that can help streamline the process, such as automated reminders and payment features.
It is also worth mentioning that software solutions are able to assist businesses with their compliance regulations. By using secure processing system, organizations are able to verify customers’ identity, Know Your Customer (KYC) compliance, and more. This enables businesses to meet the standards of the Payment Card Industry Data Security Standard (PCI DSS) and Foreign Account Tax Compliance Act (FATCA). As such, software solutions offer financial organizations level of due diligence and protection that manual processing simply cannot match.
Organizations that choose to implement reliable automated accounts receivable software also benefit from increased efficiency, cost savings and improved customer service. By utilizing automated invoicing and payment features, businesses can minimize unnecessary administrative workloads, allowing employees to focus more on customer service and helping to improve ROI.
In conclusion, there is notable risk when it comes to failing to automate the order to cash process. Not only do organizations risk losing large amount of time and money due to the associated inefficiencies and errors, but they are also exposed to losses through missed payment deadlines, late fees, and legal waiver of rights. Fortunately, there are many advantages to implementing reliable accounts receivable solution, such as improved accuracy in billing and payment tracking, enhanced customer service, increased efficiency and cost savings, and compliance with regulation standards. It is therefore wise for businesses to strongly consider automated software to reduce the risk of loss and maximize profit.
