What is Order to Cash?
TheOrder-to-Cash (O2C or OTC) is the entire process involves in the order processing system starts with receiving an order from a buyer. The order processing involves Order Management, Order Fulfillment and Shipping, Invoice Generation and Payment, and Account Receivables. The complexity of the OTC depends on the industry that covers your business. It plays an important role in maintaining the organization’s relationship with its clients.
Various processes involved in OTC can be improved using an integrated software solution. You can make your OTC process more effective and efficient to serve customers faster. It will not leave a place for manual errors like delays in shipping, double entry of orders, misinterpretation of the client’s order, Poor inventory information, etc.
Following are the steps involved in the OTC cycle:
1.Customer Places an Order
The cycle starts with a customer order for your company’s goods or services. It could be directly through your website or your promotional activities. To process your sales orders, automate your order management with OTC solutions.
2.Order Fulfillment and Shipping
At this stage, the shipment is prepared for dispatch, or the service appointment is scheduled. Businesses dealing with physical goods should have accurate details of their stocks and warehouses as your order fulfillment is directly linked to your ordering software. Your pickers should have exact information on where to find items. Once the order is shipped, the customer should receive tracking automatically.
If your business is based on a subscription model like software and programs to be renewed after a certain time, your OTC solution is inevitable for your business.
3.Invoice and Receiving
The customer should be sent an invoice containing all the information about the products they ordered. It should include taxes and discounts as well. Buyers should be provided with multiple payment options to fasten the payment process.
4.Account Receivables and Reporting
Once you receive payment for the sales order, it should be recorded in the general ledger.
The whole OTC process can be completed effectively with an efficient order management system without delays and errors.
You can streamline your Order-to-Cash system with an efficient OTC solution that improves collections, reduce cash cycles, and optimize accounts receivables.
The OTC solution with such features is provided by BFAG that manage the following activities:
- Information analysis
- Root cause analysis
- Analysis of receivables
- Collections and receipts management
- Contract Management and payment terms
- And others
So, connect with us today. Visit our website for more information on our services.
BFAG (Boston Financial Advisory Group) provides the best Compliance Services. We have a team of experienced professionals who can help you in maintaining your books of accounts. With BFAG taking charge of your FDI Compliance and Reporting, you can focus on deepening the partnership with foreign companies and expanding your business.
So, get in touch with us to avail of our services. Contact us in case of any assistance or queries.
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