Risks Of Not Adopting An Order To Cash Software
AR COLLECTION METRICS TOOL
In todays highly competitive and dynamic market, businesses must strive to stay ahead of the competition by arming themselves with appropriate technologies. Enter Order to Cash software a tool designed to automate the order-to-cash process and enable businesses to effectively manage their order and payment cycles. Although there has been noticeable rise in the demand for and adoption of such software in the last couple of years, some organizations are still not leveraging them, leaving themselves exposed to multitude of associated risks.
For financial executives, the dangers of not embracing order to cash software lie in their inability to keep up with customer needs, the increasingly complex compliance and regulatory requirements, and their inability to extract actionable insights from the process performance.
Without Order to Cash software, manual status updates consume up to fifth of the organizations resources, meaning that employees are limited from taking on additional tasks. Limited resources in turn could negatively affect customer satisfaction, leaving negative impression and eventually snapping away at the loyalty of customers.
Moreover, collecting invoices, receipts, and payments all manually means that organizations are limited in their capacity to capture and process them in an auditable and compliant way. Automated recording of the cash cycle ensures that businesses are compliant with regulations and standards, avoid the pitfalls of human errors, receive accurate reports and analytics regarding payments made and received, and access customer data for timely decisions. Being unable to foster compliance could incur them steep fines and possibly tarnish their reputation.
Further, manual methods severely limit the decision-making capabilities of finance teams. financial executive equipped with single source of truth provided by Order to Cash software has real-time, granular views of the performance of the process. Without it, they are left to relatively more archaic methods such as spreadsheets, leading to less than accurate results due to inherent input and calculation errors. Relying on inaccurate data could severely limit the potential of the finance teams as decisions could be ill-informed.
In conclusion, the need for order to cash software is driven by the need for improved accuracy, efficiency, and security in the process. To stay competitive, financial executives must ensure that their organizations adopt the technology to enable the capture and recording of relevant customer data, ensure compliance, and enable the extraction of meaningful insights from the data.
