Optimizing Order-To-Cash With Automated Accounts Receivable Solutions


When accessing the revenue cycle capacity of any given business, the order-to-cash process should be closely evaluated. Multiple steps within the O2C cycle, such as invoicing, credit collection, payments, and reporting are undertaken within accounts receivable. It is possible to obtain success by leveraging automated AR technology, but understanding the best way to use this type of solution is important. This guide provides an insight into how businesses can utilize an ar accounts solution to optimize their order-to-cash process.

The first strategy for gaining the most benefit from cloud-based automated ar accounts solution is to understand the real-time data integration capabilities found within most modern solutions. This allows for the interoperability of different businessesystems, including ERP, invoice, and collections systems. Additionally, these solutions offer strong predictive analytics capabilities which can be used to identify discrepancies in the cash flow. Predictive analytics can also help to identify opportunities to take more proactive actions in collection attempts.

In order to move to the next level of AR automation, businesses should consider leveraging artificial intelligence and machine learning. When done correctly, these technologies can identify patterns that would remain unseen if traditional finance processes were used. AI and machine learning also help to identify errors, such as duplicate invoicing, miscalculations, and missing credit applications. By predicting these errors upfront, businesses can reduce the amount of manual work that is done. Aside from reducing errors, these technologies can also help to automatically match incoming payments to the right customer and invoice, streamlining the process and saving time in the long run.

Additionally, businesses should evaluate the ability of the ar accounts solution to monitor customer payment performance. Knowing important metrics such as current payment status, delinquent, and aging balances can help businesses make informed decisions on collection attempts and customer segmentation, resulting in improved accuracy and fewer errors. By automating the tracking of customer payment performance, businesses can improve their decision making abilities almost immediately.

Ar accounts technology also offers businesses the ability to on-board new customers quickly and easily. Through the automated ar account system, businesses can quickly onboard new clients and gain access to pertinent customer information. This is valuable asset, helping businesses to gain insights into newly acquired customers, uncover any discrepancies that exist, and begin collecting payments more efficiently.

Finally, businesses should consider leveraging their ar accounts solution to take advantage of payment channels that are available within the marketplace. This allows businesses to leverage online payment methods such as direct debit, credit card, and bank transfers. By utilizing modern payment methods, businesses will be able to collect receivables faster and reduce the number of customer disputes and incomplete payments.

By leveraging the automation capabilities found within ar accounts solutions, businesses can streamline their order-to-cash process and enhance their revenue cycle capacity. By understanding the real-time capabilities and exploring artificial intelligence and machine learning, businesses can reduce the number of manual interactions required in collection attempts. Additionally, businesses can take advantage of customer segmentation and on-boarding capabilities to gain quick insights into new customers and payment channels to collect receivables faster.