The Financial Implications Of Skipping The Order To Cash Software
CLOUD BASED CASH APPLICATION SOFTWARE
Skimping on the software needed to manage order to cash operations comes with tangible costs, both financial and non-financial. Cloud based cash application software presents great opportunity to mitigate these costs, making it sound investment for any finance executive.
The order to cash rating focuses on companies ability to generate cash from customer orders and receivables. Without software in place to manage the process, companies risk slow payment cycles, increased costs for working capital and other arrangements, reduced cash flows, and mistakes in data-entry. In contrast, streamlining and automating the order to cash process through software can result in immediate improvements.
Software for cloud based cash application provides central repository for customer and financial data, allowing finance executives to process orders, automate accounts receivable, link customer data from multiple sources, and generally simplify the order to cash process. Such software also uses automation for order entry, payment reconciliation, and cash allocation, generating more matching and discoverable cash at lower cost. As much as 30-40% of costs associated with manual process can be eliminated due to automation.
In addition to cost-savings related to order to cash operations, implementing cloud based cash application software allows finance teams to deliver better customer service. Automating payment cycles through software can reduce disputes between customers and the accounts receivable department while automating cash application also reduces processing errors and quickly identifies discrepancies.
While upfront costs of cloud based cash application software may be deterrent to some finance executives, the total cost of ownership of such systems can actually be quite low. Cloud based software providers are regularly updating systems, meaning frequent, automated updates and no investment in software licenses or hardware maintenance. Additionally, dedicated customer success teams from the software provider often provide specialized training, enterprise-wide support, and opportunities to further streamline operations.
The increased agility of cloud based cash application software allows for seamless integration with existing systems, combining customer and financial data from multiple sources into single repository. This provides comprehensive overview of customer accounts with updated and discoverable payment information. Automated analytical reporting functions simulate cash forecasts, address forecast gaps, and identify potential customer risk.
Overall, investing in digital transformation from order to cash software is sound decision for finance executives. Increasing automation in order to cash operations allows for decreased costs, improved customer service, and updated cash forecasting. The cost savings and the flexibility of cloud based cash applications make strong case for software investment and the mitigation of financial and non-financial risk.
