The Risk Of Ignoring Order To Cash Software


Finance executives are often tasked with ensuring any risks to the business are minimized. While risk can come from many sources such as operations, legal, and environmentensuring effective financial processes and systems are in place can aid in reducing the overall risk of operations. Without focused effort on collections, credit risk, and the implementation of specialized software solution for Order to Cash (O2C) processes, the viability of the business may be at risk.

When sales and operations are focused toward growing business, it is difficult for finance to effectively manage and mitigate any risk. By ignoring collections and credit risk, business can quickly find itself overwhelmed in outstanding and past due debts. With no visibility or control over operations and collection actions, CFOs and finance executives cannot effectively forecast future working capital or risk of over-extended credit.

Without software solution to monitor, manage and report on the credit and collections process, finance executives risk the ability to identify, and then mitigate, potential issues associated with outstanding debtors. Ignoring the need for specialized O2C system can leave financial executives in the dark. Profits can quickly be wiped out with bad debts and no access to information to support decision making and problem resolution.

Lack of visibility and access to real-time data also makes it difficult to properly resource any activities associated with collections and credit risk. Without reporting to understand how debtor?s behave, or how diverse the customer loans are performing, financial executives are unable to optimize their credit policies and payment terms.

Investment in an effective O2C software solution, like those offered by leading providers, provides detailed data and insight into accounts receivable including, credit limits, overdues, collection trends, and the performance of various industry types. This comprehensive package can also include tools for remote credit risk assessment, plethora of automated collection tools and credit risk controls. Combined with deeper level of analysis and reporting, finance executives and their teams can identify warnings signals, quickly and effectively review customer credit, and ensure their companies are supplied with the working capital they need to survive and thrive.

In these ever-changing times, the ability to pay on time, and at the same time maintain customer relationships, is what drives the success of any business. By proactively investing in comprehensive software solution to support their O2C processes, finance executives can ensure they remain informed of all the exposure associated with their credit and collection policies, and make confident decisions that protect the longevity of the business.