Unleashing The Dangers Of A Manual Accounts Receivable Process
CHALLENGE TO AUTOMATE ACCOUNTS RECEIVABLE
For many in the C-Suite, pursuing an automated accounts receivable solution is wise decision. That is because the risks associated with relying on manual processes, such as lack of timeliness, consistency and accuracy, all contribute to making the order to cash software indispensable.
Timely payment tracking and customer outreach is major cornerstone of accounts receivable management. However, when using manual processes, key tasks such as collecting payments and customer follow-ups can become tedious and difficult tasks increasingly so as the organization grows. This can lead to significant revenue loss and customer attrition due to customer dissatisfaction and human error.
Furthermore, manual processes often lead to problems when it comes to reconciling payments. Inconsistencies between paperwork and mismatched books can result in frustrated customers and cost businesses time and money to resolve. Automated solutions, on the other hand, eliminate and look for discrepancies down to the line item level and can take corrective action accordingly.
The cyber security risks associated with manual accounts receivable management also represents substantial threat to organizations. Manual accounts receivable solutions lack the built-in security features and fraud protection of automated software. This leaves organizations susceptible to unmonitored payment activity, unauthorized access and data breaches.
Overall, the lack of standardization and missing security features provided by manual accounts receivable management can be detrimental to an organizations financial health and customer satisfaction. Automated accounts receivable software offers tremendous advantages such as standardized processes, timeliness, accuracy, and customer outreach. Therefore, from the perspective of Financial Executive, transitioning from manual to automated accounts receivable is an essential step for organizations to build reliable and secure order to cash process.
