Using Accounts Receivable Automation To Streamline Order-To-Cash
ACCOUNTS RECEIVABLE AUTOMATION VENDORS
The process of order-to-cash is at the center of businesses operations. It encompasses the journey of customer order after the purchase to the payment and receipt of the product. As an executive working in the finance department, it is essential to recognize that streamlined and holistic order-to-cash practices can exponentially increase businesses growth. Accounts receivable automation solutions exist to do just that.
Accounts receivable automation vendors offer end-to-end solutions for managing accounts receivable. These solutions are designed to streamline operations and minimize the amount of manual labor necessary for managing order-to-cash operations. Through integrating data from the entire purchase process with their collections and payment systems, AR automation vendors can ensure an efficient and reliable order-to-cash process.
The first step to incorporating an AR automation vendor is to assess the current order-to-cash practices. Determine what kinds of payment methods are accepted, as well as potential issues within the process. For example, areas of the process that are manual or may experience delays can serve as starting points for implementation. After assessment steps have been completed, one must select an AR automation partner which can address any gaps within the process.
These vendors are expected to provide tools to remove manual entry of invoices, to facilitate automatic discounting, and to better manage customer relation data. it is essential to select vendor that meets the demands of the business, from the collection of payment to customer service functions.
After successful vendor has been chosen, it is time to implement the solution. Automating accounts receivable requires the input of customer and invoice information for the integration. The implementation process can take anywhere from few days to weeks, depending on the complexity of the customer data and the speed in which the customer provides the data. businesses must agree to systems and processes with their chosen vendor to ensure the smooth and timely implementation.
Throughout the implementation process, it is important to monitor the progress of setting up the solution. During the first few weeks of launching new accounts receivable automation setup, businesses must ensure that the customer data inputs and the financing sources are accurate. This step is essential to troubleshoot any issue at the beginning of the process, as remedying issues after the process has been set up can be difficult.
Once the setup is complete and accounts receivable is automated, the operations managers and executives of business must take every step to ensure its successful operation. Checking customer data over time is essential to ensure accuracy and up-to-date information is available. Data cleansing will help provide up-to-date and accurate data that drives customer relationship management and alerting about potential issues. Additionally, communication between the vendors and their customer relationship management (CRM) team is of utmost importance. Utilizing the vendor?s CRM is critical for monitoring payments, customer accounts and alerts.
Utilizing accounts receivable automation vendors is an essential strategy for order-to-cash optimization. Implementing vendor provides businesses with the tools they need to gain greater efficiency and accuracy, while significantly improving the customer experience. When done correctly, this process can be an invaluable asset to businesses as they embark on the journey to attaining their financial growth objectives.
