Tips For Using Smart Goals In Accounts Receivable With An Order To Cash Software
SMART GOALS FOR ACCOUNTS RECEIVABLE
Today, smart goals are all the rage when it comes to technology, and accounts receivable is no exception. With the proper software, smart goals can be set in order to improve the efficiency of your order-to-cash operations.
The order to cash cycle is one of the most important parts of any organizations revenue-generating operations. It involves taking an order from customer, getting the order fulfilled, and collecting payments for those orders. Automated processes can help to streamline this process, freeing up time for billing, finance, and customer support teams.
Smart goals are great way to measure the success of your order to cash software. You can track and manage goals such as cash flow, customer satisfaction, invoice accuracy, and more. This article will go over how to use smart goals in accounts receivable with an order to cash software, so you can get the best results from your investments.
Set up Analytics
Before you can get started, you will need to set up analytics for your accounts receivable data. This will provide you with detailed view of your data, including sales, accounts receivable, and cash flow. This will give you better understanding of how your order to cash operations are performing, so that you can set up goals accordingly.
You can get analytics from number of providers, including the software you are using for your order to cash system. The analytics will help you to identify areas that need improvement and successes that you should be celebrating.
Determine Smart Goals
Once you have the analytics in place, you can start setting your smart goals. To get the most benefit from smart goals, it is good idea to set goals that are both attainable and measurable. This will make it easier to track your progress and make adjustments where necessary.
For instance, if you have an average of 87% invoice accuracy year-over-year, you could set smart goal to increase this to 90% or higher. If you have high customer return rates, you could set goal to reduce returns by 10%.
Create Alerts
Once you have set up your analytics and set your smart goals, you will want to set up alerts. These alerts will help you track your progress and identify any warning signs or dips in performance. This will help you stay on top of your order to cash operations, so that you can course-correct any issues quickly and efficiently.
Analyze Data
In order to know how successful your goals are, you will need to analyze your data. This should be done at least once month in order to get good idea of how well your systems are performing. You can use the analytics you set up to easily track the success of each goal, and make any necessary changes.
Review Progress Regularly
Finally, it is important to review your progress regularly. This should be done at least once quarter in order to make sure you are on track and that you are making progress towards your goals. If you find that progress is not meeting expectations, you can take corrective action as needed.
Using smart goals in accounts receivable with an order to cash software can go long way towards increasing efficiency and improving cash flow. With the right analytics, goal setting, and regular review, your business can get the most benefit out of its order to cash system.
