Evaluating Accounts Receivable Software to Optimize the Order to Cash Process

Solution-driven finance departments appreciate the full capabilities that an accounts receivable (AR) system can bring to the table. Companies of any size can take advantage of the value an AR software delivers to their order to cash process. Due to the availability of cutting-edge technology, the platforms that enable accounts receivable process management have the potential to fundamentally alter the way businesses interact with their customers.

As a C-Suite executive, you may view the implementation of an AR system as a financial decision. Although costs may be considered when evaluating potential investments, an effective system should also be selected based on careful consideration of the different functions and features it offers. Deploying an accounts receivable software solution can help to unlock new opportunities and unlock cash, providing customer satisfaction and increased customer engagement.

Step 1: Research AR Solutions

Comparative research is essential when selecting a new AR system. First, look into features, functions and capabilities that set specific software solutions apart from the rest and decide which offering is the best match for your organization. In addition, consider the user feedback and support your favorite software provider offers. When researching customer service, explore means of customer contact delivery, customer account support and customer billing, and conduct research into the customer service ratings of different providers.

Step 2: Outline Requirements

Create a list of parameters to help you accurately assess the features each software package provides and the ability to match your company’s specific needs. Analyze the benefits from the perspective of customer service, speed of transaction and billing. Make a list of AR requirements you consider to be the most important.

Step 3: Select a Provider

When you know what you need from the accounts receivable process, determine the best provider to meet orders to cash and customer service requirements. Perform a thorough examination of vendor options, looking into the ease of use and interface of their systems, customer service options and the scope of their AR platform. Always remember that customer service should be the deciding factor when selecting the right AR system.

Step 4: Reach Out to Selected Vendor

During this phase, contact the selected provider to discuss all related topics. Be sure to raise questions that are relevant to the availability of the vendor, including whether the software provider also offers setup, post-implementation training and help desk support.

Step 5: Implement the Solution

After making your selection, you must ensure that the implementation process runs smoothly. This involves setting up the software and establishing supply chain technology connections. If applicable, ensure connectivity between your ERP and the AR system your organization has chosen.

Step 6: Create Documentation

Creating the required documentation lets your organization efficiently run the AR system and prepares all parties involved. This might include creating reference documents, teaching your staff to use the software and training your customers. Develop operational documents such as employee policies, best practices and process updates to maximize the effectiveness of the system.

Step 7: Monitor and Tweak

After implementing your new accounts receivable software, the next step is to monitor performance. Compare the current performance to initial goals to determine if the system is meeting your expectations. If not, the best approach is to identify the process and communication problems causing the system to underperform. This information can then be used to make whatever tweaks are necessary. Keeping an accurate record of the activities associated with the accounts receivable system allows for efficient testing and can help avoid any potential problems in the future.

Conclusion

Careful planning and implementation of an AR solution will help to optimize the order to cash process. Accounts receivable software provides the ability to process billing and collection payments quickly and efficiently, resulting in improved customer service and increased customer engagement. By looking into a vendor’s features, functions and customer feedback carefully, selecting the best match for your organization, implementing the solution smoothly and monitoring performance regularly, C-suite executives can ensure that the investment in accounts receivable pays off.