Order To Cash Automation: A Step-By-Step Guide For Executive Finance Leaders


It can be challenging to stay on top of finance operations in todays fast-paced business landscape. From accounts receivable to accounts payable, cash application to financial close, finance executives are tasked with keeping close eye on the organizations financial health and processes.

Cash application is particularly important in the order-to-cash cycle. Automating cash application tasks can have significant positive effect on the bottom line, helping to speed up the collection process, minimize uncollectable days, and enable more accurate receivables portfolio analysis. With the right order-to-cash solution, organizations can look beyond manual cash application processes and towards using automated solutions for an optimized workflow.

The following provides executive finance leaders with step-by-step guide to using solution for improved cash application:

1. Determine the needs of the business. Establishing the goals and requirements of the business is critical first step. Begin by assessing the current order-to-cash process and identifying ways that cash application can be optimized. Consider the types of payments expected, processing times, internal controls required, and risk factors associated with the order-to-cash cycle.

2. Select and implement the order-to-cash platform. Once the business needs have been determined, it is time to select technology platform. Look for system that has the ability to automate cash application tasks, integrate with other systems, provide exception handling and service-level agreement management, and offer visibility into the end-to-end order-to-cash process. reputable customer support team should also be factored into the selection decision.

3. Start the cash application process. Identified customer payments can be applied automatically to an invoice in the order-to-cash solution. The system will match each payment to an invoice, ensuring accuracy while offering the ability to modify or reject payment sets when necessary. Automated cash application speeds up the reconciliation process, freeing up time for staff to focus on more critical tasks.

4. Monitor cash application performance. Tracking the performance of cash application is must for any executive finance leader. Regular review and analysis of the data will provide decision-makers with the insights needed to maximize the efficiency and profitability of the order-to-cash process.

5. Regularly review and adjust. Good cash application solutions are flexible and can be adjusted to react to changing payment patterns. With strong order-to-cash platform in place, finance teams can take full advantage of cash application automation tools as well as update system parameters to meet changing business requirements.

Automating cash application can have both immediate and long-term positive impacts on the accounts receivable side of the organization. Best practices adopted by executive finance leaders can help usher in quicker collections and improved accounts receivable performance. comprehensive order-to-cash solution should provide teams with high degree of visibility, accuracy, and scalability, enabling finance teams to focus on more important tasks. Following the above step-by-step guide should help ensure successful cash application processes.