The Hidden Perils Of Manual Cash Management Operations


As cash is essential to the survival of all organizations, proper cash management and control are essential to the stability and sustainability of business. Unfortunately, manual or traditional methods of cash management operations pose an enormous risk to organizations, ranging from the potential for significant financial losses to the very survival of the company.

Organizations rely on steady influx of cash to fund daily operations and commitments. Without proper cash management, business may have difficulty meeting obligations, face diminished revenue and weaken its competitive position. The consequences of inadequate cash flow can be catastrophic, ranging from late payments to clients, lack of working capital, missed opportunities and even bankruptcy.

Organizations that do not invest in the latest advancements in cash management software and technology can be at disadvantage in competing in rapidly changing business climate. As such, manual cash management methods can become an Achilles heel in the battle for sustainability.

businesses are particularly at risk in downsizing their manual efforts. Financial controls may be skipped, manual processes may be incomplete or inaccurate and potential gap opportunities used by criminals to launder money can be overlooked or unacknowledged. Furthermore, diverting resources from manual operations to digital is not always cost-effective.

More importantly, manual operations can be extremely time-consuming and error-prone. Manual processes also lack efficiency and scalability, as personnel have to perform multiple administrative tasks that could have been automated using order to cash software. The manual operation system has no coordination for orders to be processed, cash flows to be tracked or invoices to be produced, resulting in highly fragmented cash flow system.

Ultimately, organizations should not underestimate the hidden perils of manual operations. Current cash management software offers an array of powerful capabilities, ranging from data mining to account reconciliation which can be used to accurately and efficiently manage cash. Automation of the order to cash process offers robust accountability, accuracy, and security.

C-Suite Executives should make decisions which prioritize investment in state-of-the-art order to cash software, to ensure the organization is protected by reliable and secure cash flow. The potential return on investment of order to cash software is up to three times the original cost, eliminating the risk and providing improved accuracy, accountability and security.