Optimizing Order-To-Cash Process With Deduction Management Software
DEDUCTIONS MANAGEMENT BEST PRACTICE
Order-to-cash (OTC) plays pivotal role in the success of any business as it encompasses the sales process from generating quotes to invoicing and collecting payments. The entire OTC process can be complicated and tedious, and leave room for errors. That?s why utilizing software to automate the OTC process is important for success. However, when it comes to deductions management within the OTC process, which is critical component in capturing receivables, many companies tend to rely on paper-based processes and manual labor.
Though manual deductions processing is common and simpler to do, it does come with higher risks than if software solution was used. Chief among these risks is leaving money on the table in the form of unclaimed deductions or not capturing deductions prior to settlement. Additionally, manual processing is inaccurate, prone to errors, and usually takes much longer than automated processes. Inaccurate deductions management can lead to misstatement of the companies financial position, and in more severe cases, improper payments, loss of invoice discounts, incorrect data in the system of record, and other financial misfortunes.
For finance executives looking to optimize their order-to-cash process, utilizing software solution that automates the deductions management process is must. software with advanced deductions management functions can not only increase the accuracy and efficiency of the deductions process, but also save time. With software, companies no longer have to track and manage deductions manually, as the software will do this step for them. This would enable the company to have more time for various other managerial and finance role tasks, and of course, in the long run, help companies save costs.
In addition to avoiding the risks of manual deductions management and having more efficient operations, deductions management software can also help companies immediately identify rule-based discrepancies in their deductions management process, so they can take corrective action before the settlement. Software solutions sometimes also offer predictive analytics to help finance executives anticipate future discrepancies, so they can preempt non-compliance.
In conclusion, finance executives should seriously invest in software-based solution for deductions management within the order-to-cash process. Such solution can not only help optimize the process, but also avoid the risks associated with manual deductions management and ensure accuracy and compliance. good OTC software will be able to identify discrepancies and prevent non-compliance, as well as provide real-time access to pertinent data such as deductions and deductions trends. Utilizing such software will not only result in cost savings from labor costs and inaccurate payments, but also improved cash flow and the ability to better identify areas for process improvement.
