Risk Of Not Using Automated Cash Reporting Software


For finance executives charged with the task of optimizing cash collection, the risk of not using automated cash reporting software is significant.

Without the use of sophisticated software, an organizations ability to effectively monitor, analyze and track cash flow collection is severely hindered. Manual processes create an inefficient and unreliable chain of business operations, and can quickly cause bottlenecks in an organizations process and data flow.

Data accuracy is major benefit of using automated cash reporting software. Automated processes reduce the risk of errors due to manual input from human resources, thus facilitating more precise analysis, forecasting and predictions regarding cash management. Furthermore, automated analysis of customer credit and debt status can better inform decision-making and more quickly set appropriate payment and collection strategies. Such tools also allow quicker identification of finance, customer and supply chain issues. Insights derived from automated cash reporting can, in turn, help to mitigate financial losses, provide greater visibility into cash-flow movements, and improve collection outcomes.

The primary risk, therefore, lies in having lack of capability to make purpose-fit decisions at the right time with the right data. This could lead to lower revenues and customer dissatisfaction. Moreover, stagnant or inaccurate reporting can lead to decrease in productivity, missed customer opportunities and misallocated resources.

The alternative to automated cash reporting software is, of course, managing the process manually. Manual input of data is costly, time-consuming, susceptible to human error and can damage customer relationships due to generally slow customer-facing processes. Insufficient controls will not provide complete picture of cash flows, increasing the risk for financial losses and non-payment issues.

Organizations that have incorporated order-to-cash software have experienced positive growth-oriented results. Automated data-entry and reporting can aid in more precise cash forecasting and improved decision-making capabilities. Automated solutions are also more reliable and secure, help save time and resources, and can effectively reduce customer payment-time cycles.

In conclusion, the primary risk associated with not using automated cash reporting software is insufficient data accuracy, dynamic industry tracking and decreased cash visibility. As this risk is significant, finance executives should consider investing in order-to-cash software to gain financial clarity, mitigate potential losses and improve revenue-performance.