Revolutionizing Your Company’s Solutions For Customer Deductions Accounts Receivable
CUSTOMER DEDUCTIONS ACCOUNTS RECEIVABLE
The forward-thinking C-Suite executive of todays digitally-driven business understands the importance of robust and reliable tools to support the order to cash process. To quickly streamline collections, fees, rebates and deductions, accounts receivable solutions must be timely, automated and contain optional customized preferences to make invoicing, reconciliation and payments more efficient.
The key goal of an efficient accounts receivable system is to reduce or eliminate customer deductions, saving your company both time and money. By integrating deductions into the accounts receivable workflow, your company can successfully utilize customer information to broaden financial visibility, improve customer loyalty, and maintain positive customer expectation management.
Order to Cash
Order to Cash (OTC) is revenue management process that involves sales orders, invoicing and payments, including the allowance for customer deductions. OTC is integrated software which collects, stores and reviews customers’ credit data, allowing for improved customer loyalty and reputation which can lead to increased revenue and cost savings.
Oftentimes, customer deductions are seen as necessary cost of doing business, however, by determining the deduction amount and type, customer payment can be optimized to increase profitability while improving customer satisfaction.
The Benefits of Automation
Automation greatly facilitates the process of capturing customer deductions data, providing an easy-to-navigate customer deductions process, and reducing paperwork and labor costs such as invoicing and payments. Automation also allows customer deductions to become part of the OTC business process which is something to consider when implementing software solution.
By utilizing an automated solution, customer deductions can be reviewed, reconciled and completed quickly, eliminating the need to manually keep up with customer deductions and preventing deductions from drifting into the void. Automation also reduces the chance of late payments, allowing customer deductions to be applied to the desired customer before the due date.
Features of Accounts Receivable Solutions
When evaluating an accounts receivable solution to better accommodate customer deductions, look for the following features and integration capabilities:
? Automated deductions from customer invoices
? Reconciliation with customer purchase order
? Allows for customer specific discounts, penalties and fees
? Email delivery of invoices
? Automated payment processing
? Improved customer loyalty
? Enhanced financial visibility
? Customization and configuration capabilities
? Improved workflow performance
Conclusion
A robust Accounts Receivable solution that is appropriately integrated with an efficient order to cash system will help bring customer deductions into view, reduce the amount of time and paperwork that is required, and reduce the number of revisions and adjustments that require manual input. By utilizing automation and other key features, companies can become more efficient in their order to cash process, thus increasing customer loyalty, reducing the risk of late payments, and allowing for improved financial visibility.
Successful order to cash solutions allow for customization, scalability and secure payment processing, allowing any size organization to take advantage of modern technology to reduce customer deductions, save time and money, and improve customer satisfaction.
