The Risks Of Not Adopting An Order To Cash Automation Solution
CASH APPLICATION AUTOMATION SOLUTION
To remain competitive in the modern environment, businesses must leverage technology to integrate and streamline processes. For those involved in order to cash (OTC) processes, the benefits of automation are especially pronounced. OTC automation solutions can facilitate the collection of customer payments, support regulatory compliance in reporting and taxation, and enable improved credit authority management. Despite the clear benefits, however, some organisations remain reluctant to invest in an automation solution, exposing themselves to number of risks.
One such risk is an elevated cost of collection. This can manifest in many ways: inefficient processes that consume staff resources and employee inefficiencies related to errors and slow processing; manual reconciliation of customer payments, which can result in lack of visibility and control; and customer dissatisfaction due to increased wait times for payments. All of these can be addressed with an OTC automation solution.
For organisations that are yet to invest in OTC automation, managing customer credit may present additional challenges. Without the ability to enforce customer compliance, invoices may not be paid in timely manner. This can result in crippling cash anxle and limited resources available to manage customer relationships. Further, the lack of visibility into customer credit limits means there is an increased risk of bad debt if companies fail to monitor customer accounts.
When it comes to taxation and reporting, an OTC automation solution can also be of great benefit. For many organisations, manual processing is required to generate VAT declarations, as well as to maintain records of customer invoices and payments for audit purposes. The process of manually extracting customer data is laborious and time-consuming; in addition, human error can lead to inaccurate reports, resulting in unnecessary compliance penalties.
Overall, the failure to adopt an OTC automation solution can jeopardise the financial performance of an organisation. Without robust system in place, cash liquidity can become compromised, customer credit is more susceptible to bad debt, and there is an increased risk of errors in order management and processing. As such, an OTC automation solution should be considered essential for any organisation that desires smoother processes, improved visibility and better customer satisfaction.
