Tales Of Operational Performance Excellence: Unlocking The Benefits Of Order To Cash Management Software


Governance in the cash flow domain, particularly in terms of accounts receivable (AR) and order to cash, has always been source of challenge for finance executives. As such, maintaining operational excellence and achieving operational performance goals is an ongoing priority for most organisations. Against this backdrop, the deployment of modern software to streamline and automate order to cash activities can be particularly useful in improving operational performance.

In particular, order to cash (OTC) management software provides suite of features and functionalities that facilitate and optimise the entire order to cash process, from when customer places an order to the payment being received. With applications for both digital and non-digital channels, OTC software offers greatly enhanced visibility and control of the order-to-cash flow and simplified methods of tracking key metrics such as Days Sales Outstanding (DSO).

Deployment of OTC software naturally presents number of cost benefits, most notably in the form of reducing manual labor and streamlining the general order-to-cash process. Yet OTC software also provides range of further, progressive advantages that promote operational performance and enable financial systems to be more eminently efficient.

Enhance Collateral Fraud Detection

Incorporating fraud analysis processes into OTC management software bolsters existing fraud prevention measures and enables the sophistication and accuracy of fraud detection to increase. By deepening the analysis of customer financials and identifying key characteristics of at-risk accounts, OTC software can highlight data anomalies that traditional monitoring of customer data alone may fail to detect.

For example, data points such as uncharacteristic order volumes, products, regions and payment methods can be established as indicators of risk in order to detect irregularities in customer accounts or outliers in their order behaviour. Through this proactive approach, OTC software can help to detect potential fraud before it takes hold and in doing so, help foster operational performance.

Facilitate Seamless Cash Flow

Whilst there are variety of accounts receivable strategies available, the process of managing cash flow and collections can be disproportionately time-consuming and laborious. At the same time, failure by an organisation to adequately monitor its accounts receivables can contribute to widening cash flow cycle and decreasing operational performance.

In this context, OTC software provides viable solution in helping to monitor, control and optimize its cash flow cycle. By automating and monitoring key processes such as invoicing, Dunning and collections, OTC software facilitates seamless cash flow from pure ordering to money received.

Ensure Accurate Collections Forecasts

Another key aspect of operating with account receivables rests in the ability to accurately forecast collections. This is especially critical in order to gauge the amount of working capital and allocate resources in timely and efficient fashion.

OTC software enables the implementation of forecasting procedures in order to ensure accurate projections. In particular, OTC software can track the progress of invoices throughout the system, monitor payment behaviour and create due-date-based reminders. This improves the accuracy of collections forecasting and assists with planning and resource optimization.

Furthermore, regular reviews of past results and existing trends enable real-time adjustments and enable informed strategies and plans to be outlined. The insight that OTC software provides thereby assists with operational performance and allows for improved decision-making.

In summary, efficient OTC management software offers rich set of features and functionalities that enable improved operational performance. The use of software for accounts receivable automation not only enables cost savings but also facilitates greater visibility and control of the order to cash process. This in turn helps to deepen fraud detection, optimize cash flow cycles and ensure accurate collections forecasts. Thus, OTC software provides an invaluable tool for finance executives looking to improve operational performance.