Using Cloud-Based Cash APplication For Order To Cash Solutions: Maximizing Efficiency And Automation
CASH APPLICATION IN THE CLOUD
At glance, the manual processing behind Order To Cash (OTC) processes can be daunting, especially when trying to maximize efficiency and automation among related cloud processes such as cash application. Understanding the implications of cloud-based cash application solution within the broader OTC context is vital to ensure reliable automation while supporting enterprise-wide visibility and control.
Introduction
The manual processes found in traditional Order To Cash operations have been source of frustration for many executives in the finance industry. Unprecedented workflow risk and slow reconciliation schedules can cause enormous problems for business in terms of both cost and compliancy. This disadvantage can be key limiting factor for the success of an enterprise’s cash visibility and triggers significant impacts on the broader liquidity of an organization. Cloud-based cash application solutions offer enterprises reliable way to maximize both automation and efficiency, as well as provide enterprise-wide visibility and control over the crucial OTC processes.
Once the parameters of an Order To Cash process have been established, cloud-based data helps to power dashboard-level of visibility, where financial executives can truly understand their liquidity status. Advanced data analytics can bridge gaps between systems, simplifying range of tasks such as Cash-On-Cash (CoC) and Average Days To Cash (ADTC) measurements that implicitly analyze liquidity. Further still, business intelligence, predictive analytics and machine-learning can help to uncover intricate details and unforeseen opportunities/risk across an organizations financial operations.
Step-by-Step Guide
1. Gather and Analyze Data: Clearly define all parameters associated with the OTC process and gather all the data associated with it. This data can inform the semantics of the integration, helping to build map of the entire OTC process and the systems which support it. Dedicated tools can help to develop set of data points, identifying which fields need to track data within the system.
2. Integrate Existing Systems: Integrate existing systems within the OTC process such as ERP and ERM, to overcome data separation and to gain more visibility and control of the overall cloud process. Advances in cloud-based integration automation can offer fast and reliable integration to such systems, allowing for ready access to the data that is needed.
3. Set Automation Rules: Once the data and systems are integrated, automation rules can be set to streamline the process of cash application. Specify conditions that will either accept or reject specific transactions, and establish multiple rules to provide more granular levels of control.
4. Start Mapping and Automating: Using the integration rules that have been set, it is possible to begin mapping and automating the data between the systems involved in the cash application process. This provides consistency to the process and can ensure greater accuracy and transparency.
5. Create Dashboard Level of Visibility: With the data now flowing within the cloud and the systems integrated, it is possible to create dashboard-level of visibility to help executives better understand the liquidity of their organization. Analytics tools can provide in-depth insights with data points such as CoC, DIO and DSO measurements.
6. Leverage Advanced Customer Analytics: By leveraging advanced analytics such as machine-learning, businesses can uncover intricate details and unforeseen opportunities/risks across the entire finance operation. Predictive analytics can help to maximize automation and mitigate risks associated with order-to-cash processes, making any manual data entry redundant.
Conclusion
The manual processes associated with Order To Cash can be source of significant pain when failing to keep up with modern industry standards. But with cloud-based cash application solutions, it is possible to maximize automated efficiencies while also providing comprehensive view across the entire process. By following the simple step-by-step guide above, it is possible to ensure data is successfully integrated and is benefiting from automation, providing executives with greater visibility and control than ever before.
