Accounts Receivable Automation in Order Entry and DSO
DSO where you want it to be? Document management for AR shows you the money.
AR departments are buried in paperwork from order capture to remittance, and paper and manual electronic processes increase DSO. Despite the efficiencies that ERP systems bring to order tracking, many obstacles cloud visibility into the financial health of an organization. Effective reporting is difficult, but effective assessment and classification of revenue stream information is critical, especially in times of slow demand. Working capital must be maximized.
Order and payment documentation is faxed, mailed and electronically delivered according to the method that best suits the customer. Varied terms are difficult to track. Employees that need to support customer relationships, supply sound credit terms and ensure timely payment spend way too much time trying to find information and documents.
Because critical order data is literally hidden in the ad-hoc processes and paperwork of employees, decision-makers often don’t have a handle on cash flow status. Organizations are at risk of insufficient response to changing conditions:
- Excessive time for dispute resolution
- Uncertain assessment of true demand
- Loosely established/enforced credit policies