The Perils Of Going Without Credit Management Software
CREDIT MANAGEMENT SOFTWARE SOLUTION
When it comes to managing credit and ensuring cash flow stability, businesses are faced with pivotal decision to go without credit management software or to use it. In this article, we’ll discuss the risks of opting to go without software for an order to cash workflow and consider their impact from the perspective of C-Suite executive.
Without proscribed software solution to manage, review, and track credits, companies are made vulnerable to detrimental cash flow problems. This is because manual and spreadsheet-based processes are prone to errors and lack the capacity to enhance internal controls. Moreover, there is lack of visibility into key customer accounts and their payment performance, leaving organizations unable to take appropriate decisions.
Moreover, when credit management software is absent, businesses find themselves at risk of losing customer data, as their records and information stored in spreadsheets are prone to errors such as discrepancies and inaccuracies. Also, during such times, the customer experience may suffer, leading to reduced customer loyalty and customers’ eventual refusal to conduct business with the company.
Moreover, manual processes become inefficient with time and require great deal of resources and manpower. This can be financially taxing and, in some cases, even lead to operational costs doubling. Furthermore, manual processes are labor intensive and require much more time than software solutions, leading to slower credit management.
Without automated credit management procedures, businesses may be faced with higher credit delinquencies and prolonged payment cycles. Financial statements may show incorrect numbers, causing discrepancies in the companies net worth and damaging their reputation. In worst case scenarios, companies may have to resort to downsizing, restructurings, or even bankruptcy.
In conclusion, disregarding the importance of software for comprehensive order to cash workflow can have serious impact on the company. Executives need to assess their existing situation and decide whether they should use credit management software as tool to ensure cash flow stability and customer satisfaction.
