Risking Workflow Disruption: The Impact Of Poor ARProcess Management
AR PROCESS MANAGEMENT
Oper Organizations rely heavily on optimized accounts receivable process management. Not utilizing software to facilitate an order to cash workflow risks workflow disruptions and significant resource costs. Departments throughout the organization, particularly in the Finance department, are responsible for the maintenance of tight and seamless Accounts Receivable process. To ensure that the accounts receivable workflow functions efficiently, the C-Suite should consider the implications of not using software-driven solution.
Receiving payments on time has huge implications on the bottom line. single disruption in AR due to slow payment processing, inaccurate customer data and manual paperwork errors could result in cash flow disruptions, reduced customer satisfaction and poor customer relationships. Moreover, not leveraging software to support seamless AR process exacerbates the number of resources required to manage each individual task. Resultantly, it delays the closing speed of month-end, influences cash flow unpredictability and leads to overworked staff and lack of visibility into customer account information.
Organizations should consider the impact that software for Accounts Receivable process managment has to offer. comprehensive AR software solution can help eliminate delays in payment processing, automate tasks such as customer order entry, simplify and accelerate invoicing and collections processes, reduce manual data entry errors and increase visibility into cash flow. Such tool can also help shape customer relationships and provide crucial customer account data for analysis.
There are several software solutions designed for AR process management, both on premise and cloud-based, that can be tailored to the financial and operational needs of any organization. The C-Suite should consider the businesses requirements, their existing infrastructure and long-term objectives when making decision. Moreover, efforts should be placed on selecting solution that connects with existing back office systems, provides data integrity and can be automatized.
In conclusion, it is certainly risk to not implement an effective solution for Accounts Receivable process management. As an Executive, it ishould be understood that the repercussions of not outsourcing software to facilitate the order to cash process can have negative impact on an organization, while optimizing the Accounts Receivable process with the use of AR software will have dramatic impact on the nature of the businesses AR operations.
