Order To Cash Solutions: Optimize Timely Invoicing Through Automation
ORDER TO CASH MEANING
For businesses reliant on order to cash cycle efficiency, order to cash (OTC) software platforms provide support and automation through every stage of the process. Introducing an OTC custom solution can drastically improve cash flow management while efficiently streamlining processes at the same time. Executives in the finance department looking to evaluate OTC software can follow along this step by step guide to fully understand the breadth of features and capabilities offered to optimize cash flow management through convenience and automation.
Configuring Your Order to Cash SolutionThe extent to which an OTC platform can be tailored to fit ispecific business process and requirements determines its effectiveness. OTC software offers built in functionalities and capabilities that strive to cater to various business processes. As such, it is vital that each parameter and module be set up accurately and comprehensively to optimize the business process.
1. Analyze Your Order to Cash Processes. Before diving into setup process for an OTC platform, modern businesses take the time to analyst their current business process and requirements. This includes understanding the current flow from customer order entry to billing and shipping. OTC platforms house these processes in their built-in functionalities. Establishing an accurate view up front will help design and configure the software components accurately and can help identify inefficiencies and redundant steps.
2. Choose Your Core Components Data Sources. Along with the comprehensive analysis of current processes and requirements, an OTC solution requires the connection of core components and data sources. Core components are software modules that need to be selected and configured to suit the needs of the OTC process and data sources are the systems that house customer and order information.
3. Engage in Setting Up the Order Fulfillment Workflow. An OTC platform allows businesses to customize their order fulfillment process and provided organizations the autonomy of customizing entire order flows from order entry to payment. OTC setting up can begin with examining existing process flows and adjusting them to suite complex business needs, including automation for timely invoicing.
4. Design and Evaluate Departments Involved. IT departments have the responsibility of tailoring OTC workflows and configuration to suit the individual business process. Many OTC software solutions now come equipped with pre-built modules that are tailored to the business process needs. The evaluation and design of these departments will determine the success of the setup process.
5. Connect Trade Partners Banks. One of the fundamental purpose of an OTC software solution is to facilitate trade between entities. Depending on the size and scope of business, payment gateway may be used for receivables, as well as direct connection to banks for transfers and setting up accounts. This step will be instrumental in helping the business receive payments for goods and services.
6. Audit and Test All Setups. Prior to pushing the OTC software solution platform out to the business and its users, the systems configuration and parameters should be tested and audited effectively. This is monumental in ensuring the OTC system runs error-free and that there are no discrepancies or confusions up front.
7. User Training UAT. Training will be instrumental in helping align users with the new OTC solution and ensuring that the system is used to its full potential without any errors. User acceptance testing will help put the OTC to the test in simulated environment using sample data to ensure accuracy and efficiency of the newly implemented systems.
ConclusionEngaging with an OTC automated platform is essential for modern businesses. With the right OTC solution, businesses can drive cash-flow optimization, reduce DSO, and significantly streamline processes to cut costs in regards to abandoned orders and manual processes. This process-oriented guide to OTC solutions walks executives in the finance department through the various steps involved in setting up and launching the most suitable OTC automated solution for their business requirements.
