The Perils Of Not Using Credit Collection Management Software
CREDIT COLLECTION MANAGEMENT
The omission of software for credit collection management can result in myriad difficulties for any business attempting to pursue accurate accounting. As firms of all sizes are rapidly transitioning to secure, automated order to cash (O2C) software, not taking the plunge can lead to consequential ripple effect of problems. While the risk of foregone opportunities for expansion is difficult to measure empirically, the financial upside and superior visibility into working capital makes the case for software adoption sufficiently clear for finance executives.
Without streamlined O2C software platform, account receivables and payments processes can quickly become slow and unreliable, leaving the company unable to accurately predict revenues, or reliably track expenses. The dashboards that provide real-time visibility into such critical information are severely compromised, leading to an inefficient use of resources and even cash flow shortages. Additionally, the lack of automation means that collection efforts are drawn out and manual, resulting in an incredibly high number of manual errors.
The issue of data security and compliance cannot be understated. Should your firm be found to be in violation of any regulations and protocols, the implications could be devastating. Without an automated collection platform to accurately aggregate payments history and separate customers, compliance becomes next to impossible. Similarly, all sensitive customer and vendor data is likely to remain unwieldy and easily exposed if not handled correctly.
Finally, the opportunity cost of not using O2C technology is significant. By forgoing the automation and expedience provided by modern collection platform, business passes up the opportunity to position itself for rapid growth in their sector. Your competitors who already embrace these modalities, are likely to outpace your firm in profitability and attract more new customers.
In conclusion, foregoing the usage of an O2C platform carries substantial risk that may not be immediately obvious, but can have wide-reaching ramifications nonetheless. From unreliable financial projections, data insecurity and compliance issues, to lost opportunities for expansion and accelerated growth, companies of all sizes must make the investment in order to remain competitive and thrive in the years to come.
