The Risks Of Not Automating Accounts Receivable Processing
AUTOMATE ACCOUNTS RECEIVABLE PROCESSING
Manual accounts receivable processing brings with it host of risks that are easily avoided with the correct order to cash software. Failing to automate accounts receivable processes engenders risks in several areas, including the potential for human error, lack of visibility into processes, and lack of insights.
Human Error
At any given moment, manual accounts receivable processing system is only as good as the humans operating it. This means that any potential missteps from manual data entry to keying in the wrong customer, invoice, or payment can add up to costly errors and errors in judgement. Manually entering data is risky process, leading to the potential for duplicate payments to be made, unrecorded invoices, or incorrect payments. The chances of incurring financial loss from an incorrect entry increase when tired staff or multiple employees are involved in the process.
Lack of Visibility
Processing unpaid invoices within manual system is far less efficient and much more time-consuming than within an automated system. This becomes evident when attempting to understand the overall financial picture related to customer payments. Lasting visibility into accounts receivable procedure cannot be achieved without sophisticated automated system that captures and stores data in real-time. centrally stored and accessible data set allows precise explanations of the payment status of outstanding invoices. Further, the lack of unified, unified system-wide view means that customer payments must be manually identified, reducing accuracy while making it impossible to craft timely customer statements.
Insights Lacking
Without automated accounts receivable processing, staff must spend countless man-hours each month attempting to identify customer risk profiles and customer predictions. Manually assessing and monitoring customer profiles is painstaking process, leading to slow customer responses and limited customer insights. Hidden customer relationship insights cannot be accurately and efficiently accessed in manual system. Having the right analytics in place allows executives to identify opportunities for efficiency improvement and strive towards selling of strategic products that improves sales numbers.
Overall, not automating accounts receivable processing impairs the accuracy of customer payment data and the visibility into the timeline of those payments. Without order to cash software to oversee accounts receivable processes, the quantity and quality of customer-specific insights dwindles drastically. Such system provides customers with the necessary transparency to effectively increase customer satisfaction and drive profitability.
