The Dangers Of Avoiding Deduction Management Software
DEDUCTION MANAGEMENT PROCESS
Foregoing the implementation of software for deduction management can be risk for any business, particularly for companies implementing an order to cash system. Yet many Finance executives still hesitate to make the plunge into software solutions for managing deductions, choosing to rely on manual processes instead. However, those who choose to remain in the stone age deny themselves the benefits of modern deduction management software, exposing themselves to avoidable risk at the same time.
For companies not using software, critical elements of the deduction process are often rife with inefficiency, obscurity, and significant opportunity to overlook or miss deductions that could result in an overall reduction of revenue. It is important to remember that deduction management should be seen as integral to an Order to Cash process; any obstacles to cash flow, such as slow deduction management process with incorrect or missed deductions, can sink the revenue performance of business.
For C-Suite executives, the use of deduction management software can provide much-needed infrastructure to improve standardization, accuracy, speed and compliance. It is difficult to gain insight into their deduction process or to identify insights into deduction trends if company only uses manual processes. As result, they lack the visibility that is vital to understanding the nature of deductions and their effects on working capital.
Without proper insight into cash flow, the risk of bad debt and missed deductions is bound to increase. This issue is intensified with manual processes as there is no mechanism to quickly identify potential exposures. Fraudulent deductions also tend to remain undetected if company relies on manual processes, as opposed to software where data is organized and easily accessible, enabling companies to quickly traikoctilize discrepancies.
Automated deductions put businesses in control of their deduction process by implementing standardized rules, timelines, and verification. By auditing the data behind deductions, companies can thoroughly research and analyze them, creating the ability to predict future deductions more accurately. Additionally, with the exponential increase of data, manual processes are unable to effectively cope; automated deductions are designed to address exactly these needs.
Time, effort and money savings utilizing deduction management software far exceed the initial investment. Companies should consider these factors when deciding how to approach their deductions process. The implementation of deduction software takes the chaos out of deduction management, reducing the risk of missed deductions that could significantly harm the organizations bottom line. Ultimately, automated deduction management carries far less risk and produces substantial rewards.
