Risk Of Skipping Automation: The Order To Cash Process


As the order to cash process becomes more complex and global in nature, Finance Executives are increasingly looking to automation software solutions to manage operations. Failing to recognize the risks associated with not employing software for automation can have serious consequences for their organizations profitability and performance.

From the C-suite perspective, manual administration of the order to cash chain can incur significant amount of costs due to human error, process inefficiencies and redundant effort related to order take-in, order bookkeeping, cash collections, and customer support. Manual order entry and invoicing can underpin costly mistakes in data entry such as incorrect item prices, quantity and delivery information that can lead to over-billing or under-billing, delayed payments and unnecessary disputes.

Incomplete or delayed cash collection results in uncollected receivables, affecting profitability, working capital, and liquidity. Poor customer support can also cause re-invoicing delays and customer churn, limiting opportunities for further sales. These costs can mount very quickly, with as much as 80-90% of accounts receivable processes still completed through manual effort.

Implementing software for automation of the order to cash process can be powerful ally to streamline the manual steps of capturing and validating the request, fulfilling and delivering the purchase, invoicing, and collecting payment. Automated solutions guarantee the accuracy of orders and pricing, leading to fewer misunderstandings and discrepancies, faster payments, and improved customer satisfaction. Automation helps ensure that operations are running at their peak efficiency, eliminating redundancies, reducing costs, and improving revenues.

Finance Executives should also look for software solution that offers complete visibility over their order to cash operations. it ishould incorporate reliable master data management tailored to international payment and currency regulations, end-to-end management of payments, reconciliation and fraud management, and dispute resolution and collections. In this way, the software should not only facilitate operations but provide corrective solutions that allow Finance Executives to stay proactive in managing their accounts receivable process.

In conclusion, for Finance Executives trying to stay ahead of their competition, automate the order to cash process offers heightened control over the organizations operations, liquidity, and profitability. By leveraging software solutions for automation, finance teams can benefit from greater accuracy, timeliness, cost savings, and customer satisfaction.