Untapped Risk: Omission Of Order To Cash Software


Across the many departments of vertically-integrated business, one of the most vital is the Order-to-Cash (OtC) sequence. It combines sales, accounts receivable, and credit to ensure seamless transactions between company and its customers. businesses that fail to address the potential risks caused by non-integrated OtC process such as manual data entry and paper record keeping systems can experience long-term consequences, such as reduced customer satisfaction, lost revenue, reputation erosion, and financial losses. Consequently, not having an OtC software solution may spell financial disaster for any enterprise.

A lack of software to handle OtC operations can have profoundly negative financial impact, as businesses lose out on revenue, erode their competitive advantage, and carry out costly manual processes. In terms of sales, not having OtC software means missed cross-sell and upsell opportunities. Companies without OtC solutions are prone to order entry errors, muddled data accuracy, delayed order processes, and inaccurate customer invoices which in turn result in extended cash collection cycles, unsatisfied customers, and potentially lost business.

Inadequate credit management that can come with lack of an OtC software is another risk. businesses could take orders from customers who are late onpayment, resulting in bad debt. The absence of credit checks and automated collection processes aggravates this risk. Companies without an OtC software will often struggle to accurately monitor and manage the value of invoices, often unknowingly exposing themselves to possible fraud.

A companies bottom line will also suffer. Without OtC software, companies cannot leverage an integrated view of customer credit and collections to effectively manage their cash flow. Thus, they become more vulnerable to delayed payments, unpaid receivables, and have to pay for manual collection processes. Having to deal with such consequences can reduce the overall financial health of the business.

Finally, businesses will be unable to maximize their use of customer data without OtC software. An effective OtC solution can allow companies to design customized targeted marketing messages and analyze customer behavior in order to build better customer relationships. To make optimal use of customer data, an integrated OtC software solution is an indispensable investment.

In conclusion, businesses who do not integrate an OtC software solution into their operations face significant risk of lost revenue, increased account delinquency and write-offs, and an inadequate ability to collect, analyze and use customer data. CFOs and finance executives urgently need to realize the importance of adopting an OtC software solution to ensure their companies financial sustainability.