Order To Cash Solutions: A Comprehensive Guide For Executives
AR COLLECTION
The order to cash process is one of the most critical lifecycles in the finance industry. It involves multiple stakeholders, including sales executives, accountants, and collection agents. streamlined and well-executed order to cash process is key indicator of success in any business. Therefore, finance executive in charge of overarching operations must understand the necessary steps and components involved in the order to cash cycle.
This guide is designed to provide executives with an in-depth look at the order to cash process, including its concepts and requirements, as well as review of available solutions. After reading, executives should have better understanding of what order to cash entails and be able to evaluate various solutions to determine which is the best fit for their organization.
What is the Order to Cash Process?
The order to cash cycle is made up of chain of critical steps and activities that are necessary in order to enable successful payment collections. There are four core components that make up the cycle: order entry, invoicing, collections, and payment processing.
Order Entry is the process of capturing customer orders, including information about the product or service being sold, the quantities, unit prices, taxes, discounts, payment terms, and shipping instructions.
Invoicing occurs after orders have been approved; the invoicing department is responsible for generating customer invoices and ensuring that accurate information is included in them. This includes review of order accuracy, involvement of the accounts receivable department, money transfer processes, and payment reminders.
Collections is the process of monitoring accounts receivable and collecting payment from customers. In some situations, collection agents are used to call clients and remind them of their outstanding invoices.
Finally, Payment Processing is the final step in the cycle. In this stage, payment details are accurately recorded, accounts receivable reconciliations occur, and miscellaneous tasks, such as issuing credits and refunds, are handled.
Why is Order to Cash Automation Necessary?
By automating the order to cash process, organizations can reduce or eliminate manual steps and eliminate errors and redundancies. Automation can also save businesses time, money, and significant resources. Furthermore, automation can help create better relationships with customers and suppliers as it istreamlines processes and allows for more visibility into the entire order to cash cycle.
Modern automation solutions for order to cash offer range of features, including multi-device capabilities, payments processing, reconciliations and analytics, data sharing and integration, real-time status updates, and more.
Which Order to Cash Solutions Should Executives Consider?
Organizations should choose order to cash solutions that match their requirements and specific needs. For executives, it is important to assess available options, evaluate these carefully and consider such factors as cost, scalability, usability, support and maintenance, additional features, and more.
Some leading order to cash solutions that executives should consider include Receipt Bank and Hyperion Financial Management.
Receipt Bank is cloud-based solution designed to streamline the entire order to cash process. The app allows users to enter invoices, monitor accounts receivable, process payments, and more. With Receipt Bank, businesses can save time, reduce manual errors, and track cash flow better.
Hyperion Financial Management is an enterprise-level solution for order to cash automation and financial management. This system is designed to automate accounts payable and receivable and to reduce manual processes. It also includes features such as real-time tracking and financial reconciliation, as well as reporting and analytics capabilities.
What Should Executives Keep in Mind When Selecting an Order to Cash Solution?
When it comes to selecting suitable order to cash solution, there are many factors that executives need to consider. Above all, they should ensure that the solution they choose meets the requirements and specifications of their organization.
Additionally, executives should assess such elements as the cost and scalability of the solution, as well as the overall ease of use. They should also consider the quality of customer support and the potential for system maintenance, upgrade and updates. Furthermore, executives should review the additional features that come with the solution in order to ensure that these align with their expectations.
Conclusion
The order to cash process is one of the most important and critical components of business operations in the finance industry. Executives looking to benefit from an automated order to cash solution must understand the process and evaluate their options before making decision. This guide has provided comprehensive overview of the order to cash lifecycle and has highlighted some of the leading solutions available. With this understanding, executives should be better equipped to make an informed decision as to which solution best meets the needs of their organization.
