How integrated processes make order-to-cash more effective and improve customer experience
Linking the stages of order-to-cash together provides companies with greater control of the entire process. By seamlessly combining intelligent tools, accurate, and often critical, information can flow freely throughout the organisation. This allows for a consistent overview, accessible by everyone in the organisation. There are also several other benefits, ranging from accessing real-time information and automating processes to free up time and resources. In this blog, we’ll discuss which processes can and should be integrated, some of the technology needed to make this happen and the advantages.
Risk management
We discussed in a recent blog the importance of risk management in reducing risk in your order-to-cash process. Integrated processes at the risk management stage of order-to-cash allow organisations to benefit from real-time data and more effective default risk management. In addition to this, it is possible to automate administrative procedures and to automatically flag credit limits that have been exceeded. This helps to reduce risk throughout the order-to-cash chain and reduce the amount of manual work needed to assess risk.
Invoicing
Invoicing is the second stage of the order-to-cash process and can be a time-consuming task. However, the increased use of e-invoicing is overhauling this. With e-invoicing you have all relevant payment information early on because the relevant data is linked to the e-invoice. This speeds up receivables management. Onguard’s CreditManager includes an integrated e-invoicing solution that invoices customers electronically. This puts you one step ahead in the invoicing process. It also enables customers to view and query invoices in their own accounting system.
Customers can also specify how they want to receive their invoices, for example by text or email and their preferred method of payment. They can also easily gain a copy of an invoice, while payment reminders with payment links make it easy for customers to pay quickly and securely. Integrated e-invoicing enables faster and more secure invoicing. Additionally, with real-time information on invoice status, you always know what action to take. This optimises the invoicing process and reduces the risk of non-payment.
Cash allocation
Cash allocation is a vital part of the order-to-cash process that matches incoming payments with the right invoices. Understandably, this is one of the most time-consuming tasks in any finance department. Automating cash allocation by integrating with tools like MatchMaker saves time and money and avoids human error. This is because intelligent cash allocation software automatically matches payments with invoices, basing the matches on name, postcode and invoice number.
Integrating this technology with our CreditManager solution, for example, means that once the software detects a received payment, it automatically updates the details in the credit management platform. This ensures that customers do not receive unnecessary reminders and you always have access to the latest information. The automation of these processes frees up time for accounting teams and allows them to use that time to contact more complicated, non-paying customers.
Ultimately, the order-to-cash process is one of the most important processes within an organisation. Having integrated processes and efficient two-way exchange of critical data ensures optimal organisation. It also provides a clear overview and greater control of the payment process.
When the payment process runs smoothly, it improves cash flow, business continuity and enables innovation. Furthermore, a streamlined order-to-cash process improves the customer experience and helps build lasting relationships.
