Order To Cash Software: Making Payments
RECEIVABLES SOFTWARE
Making payments and collecting receivables are an important part of any businesses operations. As the financial sector and global economy continue to shift and create new challenges, companies must be well prepared to respond to the changes through effective order to cash solutions. Receivables software can be implemented to manage accounts receivable and provide variety of features that benefit the finance team and streamline the order-to-cash processes. Here, executives of finance teams will learn the essential details of utilizing solution for receivables software and how it fits within the order to cash cycle.
Overview of the Order to Cash Process
The order to cash (OTC) cycle is set of business processes that allow company to handle its sales functions. In short, the order-to-cash process consists of generating, processing, and collecting payments on invoices. Invoices are generated when goods or services are delivered and payment is requested, often sent directly to the customer or sent out for collection. When invoices are created, accounts receivable records are created as well, and both the invoice and accounts receivable records are maintained until the payment is collected. Receivables software is used to manage incoming and outgoing payments from customers, ensuring that the companies OTC process is accurately executed and fully compliant.
Benefits of Receivables Software
Receivables software is valuable tool for financial teams. With receivables solution, invoices can be created quickly and accurately, reducing the risk of mistakes and streamlining the order-to-cash process. Receivables software also provides real-time updates on all payments, making follow-up and collection of payments much easier. The software can also be used to automate follow-up on delinquent invoices and enforce accounting best practices, allowing the finance team to more effectively manage receivables.
Utilizing Receivables Software
The process of utilizing receivables software solution can be broken down into three essential steps. First, the necessary information must be entered into the software in order to track invoices and payments. This includes customer information, accounts receivable account numbers, and payment details.
Second, invoices must be created using the information entered into the system. To create an invoice, all necessary data must be entered into the system, including customer information and payment amounts. Once invoices are created, the payment records can be managed and updated as payments are made and payments are tracked in real-time.
Finally, receivables software can be used to generate reports to measure accounts receivable performance. This includes days sales outstanding (DSO) to monitor payment progress and delinquent accounts receivable, as well as other reports to track customer payments.
Conclusion
Order-to-cash processes can be difficult to manage, with many factors to consider and track accurately. Receivables software is key tool that financial teams can utilize to streamline the process and ensure that payments are received as efficiently as possible. Receivables software provides features that allow finance teams to track and manage incoming and outgoing payments, automate follow-up on delinquent invoices, and generate reports to measure accounts receivable performance. By utilizing receivables software, executives can improve the order to cash process, ensuring that the companies financial operations are managed efficiently and accurately.
