Automating Account Receivable Credit And Collections With An Order To Cash Solution


businesses dealing with customer invoices continuously battle to maximize their cash flow. This is mainly attributed to difficulty managing customer debt efficiently. Automated account receivable credit and collections is potential solution to maximize the cash flow of the business by quickly reducing the collection cycle time of its customers.

An Order-to-Cash (OTC) software is platform that automates the entire order-to-cash process, including the collections of receivables. By leveraging the OTC solution with its automated Account Receivable Credit and Collections capabilities, businesses have great opportunity to improve customer relations and bring the credits and collections process onto their books.

Step-by-step Guide to Utilizing Automated Account Receivable Credit and Collections Solution

The following step-by-step guide provides an overview on how to use an automated Account Receivable Credit and Collections solution as part of comprehensive OTC software platform.

Step 1: Analyze Existing Credit and Collections Procedures

The first step of implementing an automated Account receivable credit and collections solution is to take inventory of current credit and collection procedures in the organization. Through analyzing existing procedures, organizations can identify the gaps in their process flow and begin to consider the best solution to address them.

Step 2: Determine Desired Outcomes

Once the current customer-facing process has been analyzed, it is important to determine the desired outcomes that an organization is looking to obtain through implementing an automated Account Receivable Credit and Collections solution. This can include customer lifetime value optimization, improved customer service, improved customer relations or greater customer satisfaction. Knowing the desired outcomes will guide the selection process and point the organization towards the right solution that can best meet their needs.

Step 3: Research Solutions and Select Provider

The next step is to research the available solutions and select provider that can best meet the organizations needs. This process should include assessing the cost, capabilities and support resources of the various providers. It is important to ensure that the selected provider will provide the organization with an integrated solution, as opposed to disjointed one that requires additional investments.

Step 4: Assess Current and Proposed Process

At this stage, it is important to assess the current and proposed process and identify any discrepancies between them. This analysis can uncover areas where the current process is not taking full advantage of the potential offered by the new solution. It can also help evaluate the risks associated with the proposed process, allowing for any modifications before the final implementation.

Step 5: Train and Implement

The next step is to train the staff in how to use the new solution, which is usually done through customized training sessions and user manuals offered by the vendor. Once the staff is familiar with the system, it is time to implement the new process into the organization. During this step, the organizationshould ensure that the implementation of the solution meets all the requirements as defined in the Service Level Agreement with the provider.

Step 6: Monitor and Analyze

After the solution has been implemented, it is important to monitor the performance of the system and analyze the customer data collected by it. This analysis can provide valuable insights into the performance of the organization, its customer base and the customer experience. It can also suggest potential improvements that can enhance the approach and better position the organization for future success.


The process of utilizing an automated Account Receivable Credit and Collections solution is an important part of an organizations order-to-cash process. By leveraging the capabilities of an OTC software, organizations can improve customer relations, customer service and maximize customer lifetime value, all while reducing the collection cycle time of their customers. The process outlined in this guide should provide organizations with the necessary overview on how to successfully approach this process and get the most out of it.