The Pitfalls Of Not Automating Dso Accounting
DSO ACCOUNTING
Accounts receivable (AR) is crucial element of the order-to-cash process, yet often times, organizations lack the necessary software tools to effectively manage the day-to-cash flow. Manual receivables transactions necessitate longer periods of time to process and record, increase the risk of inaccurate calculations, and present difficulties in creating financial statements. The primary consequence of neglecting to incorporate AR software for DSO accounting is the bulky amount of time that it takes to collect receivables.
Without automation, the manual tracking and management tasks of the accounts receivable process can become an arduous task for any business. The time-intensive nature of manual processes impedes efficiency and accounts receivable proliferation. Slow collection times can be attributed to range of factors, including time-consuming manual cash application, tedious processes such as data entry, and lags in customer payment terms. Risk of inaccuracy is also greatly heightened when manual DSO accounting is conducted. Stringent processes need to be adhered to when dealing with the task of creating financial statements. single miscalculation or missed invoice can lead to faulty or inaccurate financials that can have wide-reaching effects across the entire organization.
Undergoing the automation of DSO accounting can provide immense benefits to business. Automation ensures transactions are accurately and timely processed, enabling business to maintain positive cash flow with customer bills, payments, and other transactions. AR software technologies use smart algorithms to quickly facilitate customer payments and automate customer communication, allowing business to reduce customer touch points while extending payment terms and mitigating risk. Automation also allows for improved visibility into customer portfolios, digitizing and streamlining the paperwork associated with the financial statements, and eliminating the time-consuming manual tracking and reconciliation practices.
The adoption of AR automation for DSO accounting can considerably reduce great deal of inefficiency and risk within the accounts receivables process. An integrated solution for DSO automation may be what Finance Executive needs to maximize efficiency in their order-to-cash workflow. Deployment of such solution will provide data-driven analytics, customer intelligence, and real-time insights that will reduce risk, streamline operations, and ultimately, improve the organizations bottom line.
