The speed of your company’s Order to Cash (OTC) cycle drives cash flow generation. The OTC cycle converts inventory to AR, and AR to cash. Cash flow can be accelerated by increasing the speed of your OTC cycle.
Accounts receivable automation can increase the speed of your OTC cycle from sales order processing to collection and payment, resulting in accelerated cash flow.
Here are some of the components of the OTC process and how they benefit from automation.
Sales Order Processing
Manually processing orders can add days to your OTC cycle, and increase the likelihood of errors in order entry. Sales orders can sit unprocessed in email inboxes, fax servers and customer portals. They can bounce around to various departments to resolve pricing, availability and other issues.
Automation can route orders through your sales order processes, reducing OTC cycle time and order entry errors. Workflow solutions can be used to monitor sales order status, and keep order processing flowing smoothly.
Electronic invoicing can further reduce your order to cash process by decreasing processing time, eliminating mailing, and virtually eliminating errors. It also increases cash flow by encouraging and facilitating electronic payment with inclusion of hyperlinks on customer invoices.
Activity management solutions automate collections preparation and prioritization to increase collections, reduce DSO, accelerate cash flow, and cut your OTC cycle. Collectors are focused on high priority collections instead of low-value manual tasks.
Online Customer Portal
AR automation with a self-serve customer portal can reduce your OTC cycle and increase cash flow.
- A self-serve portal encourages electronic payments, reducing mailing and processing time.
- Customer portals with dispute reporting features reduce payment delays caused by customer holds.
- Self-serve profile management keeps master data accurate and up to date, reducing OTC processing errors, disputes and cycle time.
Order to cash process automation will reduce your OTC cycle and increase cash flow. It will also increase efficiency, reduce costs and enhance customer experience. These benefits are compelling reasons and justification to invest in AR automation.
Accounts receivable and accounts payable cloud-based solutions with customer/vendor portals and digital processes keep vendors and customers connected whether they work remotely or not.
With a connected accounting solution for your accounts receivable and accounts payable teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep Collect, a leader in cloud-based connected accounting solutions, can help you boost productivity and automate cash flow with:
- Automated Communications
- Customer Self-service
- Collections Activity Management
- Reporting & Forecasting
Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep or visit us at www.lockstep.io