The Risk Of Ignoring Collections Software Solution Automation
COLLECTIONS SOFTWARE SOLUTION AUTOMATION
Finance executives, the rationale for automated Collections Software Solution Automation is clear?it can expedite cash flow, balance receivables and reduce bad debts. Without investing in such system, finance staff would be spending considerable time manually handling tasks that could easily be automated. This article explores the damages of neglecting this software solution for Order to Cash automation.
First and foremost, ignoring this automation could lead to substantial revenue losses. Studies show that by automating the accounts receivable process, businesses were able to recoup 6.03 days of working capital for every ?100 of revenue. This increased liquidity in turn can be utilized to expand the business further and drive growth. On the other hand, without this collections software, businesses are at risk of not being able to collect payment on time, essentially cutting their profits.
Moreover, there are tangible labor cost savings when not using such software solution. Invoice data entry, account reconciliation and payment tracking are all tedious and time-consuming activities?each adding cost to business. Without such automation, staff expenses can easily inflate unnecessarily.
Moreover, without collections software solution, dispute management becomes headache. Instead of automated invoices and payment tracking, finance departments need to resort to onerous emails and call-backs for invoice tracking. This equates to not only an increase in the staff?s workload, but also an increase in their stress levels. Meanwhile, customers will be unable to view the status of their account from the web, incentivizing them to choose competitors who use automated software over those who do not.
The risk to customer relations when ignoring collections software is tangible. Apart from the customer satisfaction issues that may arise, customers also face purchasing delays. This can be particularly hazardous to businesses whose customers solely rely on credit purchases, or businesses that require credit approval. Without automated orders, customers may end up waiting days before they receive their products.
Finally, businesses who evade the automation can easily suffer the negative effects of human error. Without the software, entire payments can be missed, overpayments can be made, late fees can pile up, invoices can take months to be paid and much more. This level of incompetence can easily damage businesses reputation, drive away customers and reduce customer loyalty.
In summary, the risk of dissociating yourself from automated collections software solution cannot be underestimated. By using this software, finance personnel can ensure proper invoice management and payment tracking, while customer satisfaction and loyalty can be better maintained. In addition, instant web access to accounts and the assurance of automated approval can save valuable customer time and provide higher cash flow afforded by streamlined collections processes.
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