Hidden Risks of Manual Processes in Accounts Receivable
BEST ACCOUNTS RECEIVABLE MANAGEMENT SOFTWARE
Accounts receivable (AR) is the lifeblood of the modern business. Yet, without an effective order-to-cash cycle and superior accounts receivable management software to support the process, businesses risk their ability to manage their financial performance effectively. Manual AR processes are no longer suitable for businesses needing scalability or speed in their operations, creating serious consternation for finance executives.
Without the right accounts receivables management software package, businesses run the risk of seriously impeding their cash flow. They may also leave themselves vulnerable to data integrity issues, compliance non-conformance, and outdated reporting functionality. This increases the possibility of their AR operations becoming source of lost revenue, instead of driver of profitability for the organization.
The data entry burden of manual, paper-based processes can be staggering, with related costs and hours to complete the work draining resources from other activities. Poorly filed invoices and other information can lead to poor quality data, inadequate control, and time-consuming reconciliations. Still more, reconciliation and aging reports and other information vital for successful management of receivables and cash flow are not available until later time than necessary for best operational performance.
A well-integrated accounts receivable management software package, on the other hand, offers range of opportunities to increase the speed, accuracy, and efficiency of AR processing, while lowering costs. Automating processes reduces the need for manual data entry and increases processing accuracy and throughput. Also, automation allows the business to collect payments faster, with automated email notification and efforts to increase customer collections, both of which limit delinquencies, improve cash flow, and cut costs.
The right order-to-cash cycle and software enable businesses to monitor customer accounts more effectively and take advantage of employee data mining to better strategize AR operations. Automation reduces the chances of manual errors, fraudulent conduct, and damaged customer relationships caused by errors, such as incorrect fees and late fees. There is also the advantage of real-time insight into the entire AR process, so any operations and cash flow problems can be uncovered and resolved quickly.
Finance executives need to consider the hidden risks of relying on manual processes for accounts receivables operations. Inefficient, manual processes often reveal themselves at the worst possible time, such as when the business is scaling operations or looking to drive higher efficiency and customer agility. The associated disruption and cost of manual processes can impact business growth and call into question current strategies and personnel. Investing in accounts receivable management software that can deliver an optimal order-to-cash software cycle is the prudent choice for modern businesses, giving them greater visibility, control and the potential to use their accounts receivable data to drive value.
