The Hidden Risk Of Relying On Manual Systems For B2B Payments


For todays finance executives, the order-to-cash process is crucial day-to-day operation that requires near-perfect precision for companies to flourish. With the continued push towards digital transformation however, the high-stakes decision of whether or not to invest in software-based solution to support the order-to-cash process is often raised. Although many frontrunners will be quick to realize the numerous advantages accompanying software-based solution, what of the risks associated with relying solely on manual systems?

Although manual interventions within the order-to-cash process undoubtedly remain as necessary evil today, multiple pressing issues can arise if manual processes are relied upon dependently. To begin, increased scope for costly inaccuracies often arise due to the potential time delays associated with manually type-entering data and the numerous manual changes that are often required to recover from system errors and user mistakes. Beyond those inherent inordinations, the increasing shift towards the automated Real-Time Payment (RTP) pipelining and processing adds heightened level of complexity to manual processes, further pouring preordination onto the resources and personnel associated with processing payments. Subsequently, RTP system disruption can play determining role in further aggravating the issues associated with manual processes given the extent to which they rely on the constant availability of real-time data.

Alongside those issues, the complexities of international payments processing present their own set of problems when working with manual systems. Not only will payment and remittance data need to be layered atop different global currencies, methods for payments, and tax laws, but the onerous task of manually reconciling them all in line with relevant accounting rules also becomes point of aggravation for many.

Finally, another issue that is especially pertinent as pertains to finance executives is the inability to predict cash flow. Without the sophisticated analytical models that are present in software-based solutions, manual processes are unable to offer accurate forecasts into revenue streams and backlogs, major concern to finance executives who are aiming to reach their bottom line. In essence, the absence of those capabilities serves to blindside the whole enterprise, complicating one?s ability to facilitate proper liquidity management and cashflow optimization strategies.

In summation, the hidden risks associated with relying solely on manual processes in the order-to-cash process are numerous and upon further evaluation, should not be overlooked. To avoid unforeseen costs and financial leakage and to gain greater control into one?s cash flow, finance executives should seriously consider the value to be delivered by investing in an appropriate software-based solution.