Across the globe, CFOs and senior finance executives have been relying on analytics and reporting to comprehend the health of their business. For instance, from an accounts receivable perspective, it is important to closely monitor metrics such as Days Sales Outstanding(DSO), Average Days Delinquent(ADD), Bad Debt to initiate course corrections. Today, any CFO will be able to identify the possible red flags in their O2C process by clicking a few buttons on their analytics and reporting dashboards, however, this was not the norm a few years back.
O2C Analytics has traversed a long way from spreadsheet-based reporting to the latest version of predictive analytics. This blog will walk you through the evolution of order to cash analytics and how an ideal analytics-driven accounts receivable tracking software should look like.
Order to Cash (O2C) process is a key component of the finance function. It involves receiving and fulfilling customer request for goods or services. An efficient order to cash process ensures a smooth logistical flow of operations. On the other hand, an inefficient order-to-cash process delays order processing, fulfillment, shipping, invoicing, and cash flow. While early automation solutions focused on processes that could not address the entire O2C process, newer technologies such as artificial intelligence and analytics can automate the O2C process. An intelligent O2C platform, like Emagia, can streamline the order to cash process and accelerate cash flow.
