The Dangers Of Ignoring O2C Automation
AUTOMATED O2C CASH APPLICATION PROCESS
Despite tight margins and the need for financial agility in shaky economic climate, many companies are still relying on outdated, costly, and inefficient operational methods for their ordering, invoicing, and cash allocation processes. By foregoing automation, such organizations not only have their time and resources wasted, but also face significant risks that can have major impact on their order-to-cash (O2C) cycle.
Without an automated O2C cash application process, businesses open themselves up to range of costly and damaging risks. For example, manual processes are slow, prone to mistakes and are unable to provide access to timely and accurate data. As result, errors can quickly accumulate and expenses can rise, hurting the organizations bottom line and creating unnecessary headaches. Barriers to entry such as long waiting lists, card authorization delays, and incorrect information can completely shut down business.
Furthermore, when orders become backlogged, customers can become restive and delay payments, which can negatively affect cash flow. Meanwhile, manual processes are labor-intensive and require great deal of manual intervention. This not only eats up valuable time and money, but also can create dangerous delays in critical processes, such as cash application and reconciliation. To make matters worse, manual processes easily become vulnerable to data compliance standards, such as Sarbanes-Oxley (SOX) and Payment Card Industry (PCI) regulations, leading to enormous penalties for businesses that do not comply.
Overall, organizations should consider investing in software for their O2C cash application process for multitude of reasons. Automated software solutions provide real-time visibility across the entire process, from invoice to payment, bringing forth significant predictability, cost-efficiencies, and peace of mind. Automation also promises improved accuracy and more consistent performance, as well as improved monitoring and enhanced security features.
C-suite executives should carefully consider the risks associated with manually processing order-to-cash cycles and the positive benefits that come along with automated software solutions. businesses using automation can achieve greater control over cash flow, better manage customer relations, eliminate costly inefficiencies, and remain in compliance with current industry regulations. Investing in automation can pay off big in the long run, delivering competitive advantages that can set businesses apart.
