Many businesses who have a hard time quickly moving through from invoice to cash application struggle not because they’re doing a bad job or because they have customers who are unwilling to pay, but because they lack standardized processes and automation. There are many moving pieces and parts and disconnects throughout the order-to-cash cycle where small mistakes are common and cash flow tends to get stuck- manual processes are usually the root cause.
Speeding up the order-to-cash cycle takes the right tools and a lot of automation; automaton that a large majority of companies do not have according to a recent survey from Aberdeen which found that only 20% of businesses have a highly automated and standardized order to cash process. Here are two must-have automation technologies for any business looking to speed up the order to cash processes.
Enterprise Resource Planning (ERP): Aberdeen recently conducted a survey and found that a modern ERP software systems can speed up order to cash in very specific and measurable ways by enabling companies to do the following:
- Standardizing procedures across the organization for quoting and order management
- Standardizing order fulfillment and delivery procedures
- Integrating manufacturing and service operations and coordinating logistics
- Providing and centralizing up-to-date and accuracy information such as order, delivery, and billing information from various locations into one place to improved customer service rates and quality.
- Measuring on time delivery and other KPIs for ongoing performance adjustments.
- Manage documents electronically for fast and easy collaboration and retrieval.
Accounts receivable management software: ERP systems usually have basic A/R management modules but these come with very limited capabilities and virtually no automation for credit and collections management, the most common place for cash to get stuck along the order to cash cycle. 34% of best in class organizations are investing in A/R automation software and this practice is becoming more and more popular among businesses of all shapes and sizes.
Accounts receivable automation software allows companies to centralize all of their A/R information and activities in one system and allows users to automate their most time consuming tasks with features such as:
- Account & Contact Management
- Actions and communications automation
- Email archiving
- Advanced insights and reporting
- Credit management automation
- Global credit and collection capabilities
- Dispute management and resolution
- Much more
How are you managing accounts receivable and credit processes today? This white paper touches on the most common strategies used by businesses and talks about the pros and cons of each. Click below to learn more.