The Costs And Risks Of Not Using Order-To-Cash Automation Software
BEST ACCOUNTS RECEIVABLE AUTOMATION APPS
Order-to-cash automation is vital component of success in any business. From the C-Suite perspective, failure to use the right software can introduce significant financial risks and significant costs. This article explains why order-to-cash automation software is invaluable, and the pitfalls of not using such software.
One of the most obvious risks of not using order-to-cash automation software is the decreased efficiency of internal processes. Without automation and the standardization of procedures, the manual effort needed to complete processes can become cumbersome and time-consuming. Unless an organization has the capacity to dedicate great deal of internal resources to improving manual processes, the company will soon face slowdowns and backlogs.
Also, without automation, there is increased probability of human error. Human error due to inattention, inadequate training, or lack of understanding of systems can lead to inaccuracies when entering or managing data. And those inaccuracies can lead to errors in reporting, discrepancies between companies and customers, and fulfilled orders that are never billed or payments not being allocated to the right invoices.
Further, reliable automation leads to improved customer relations. Without order-to-cash automation, delays and inaccuracies will impact customer service. And with customer service being key driver of success, failure to use automated order-to-cash processes can adversely affect the companies reputation, its reputation, and its financial performance.
In addition to the risks already mentioned, not having order-to-cash automation may also lead to losses in revenue. Automation enables companies to streamline their order-to-cash cycles and make sure that invoices are sent out quickly and accurately. Otherwise, prolonged periods of time may elapse upon completion of an order with no payment received as customers are not aware invoices are due. Invoicing often takes back seat due to other tasks, and with no automation, companies could experience significant shortfalls in working capital.
The potential financial costs of not automating the order-to-cash process can be immense. Manual order-to-cash requires more labor and resources. Additionally, businesses are also exposed to the expense of recovering from wrongly entered data and discrepancies in reports, and lower customer retention due to poor customer service.
Overall, the efficiency, accuracy, customer service, and financial health of business is largely dependent on having reliable and functional order-to-cash automation software in place. Ignoring automation exposes the company to risks that far outweigh the costs of using reliable software suite.
