Manual workflows across the order capture, fulfilment, invoicing, collections, and payment reconciliation stages in the Order-to-Cash (O2C) cycle create delays, inconsistencies, and working capital constraints. Organisations that rely on fragmented systems and spreadsheet-driven reconciliations face higher Days Sales Outstanding (DSO) and limited visibility into receivables.
With automation solutions representing 86.5% of the accounts receivable automation market in 2025, businesses are moving towards integrated O2C processes to strengthen financial accuracy and process stability.
challenges in traditional order-to-cash processes
Traditional order to cash operations rely on manual steps and disconnected systems, which slow billing and impede recovery. Manual entry increases the likelihood of inaccuracies across order capture, fulfilment, and invoicing, creating discrepancies that often flow downstream into disputes . Finance teams spend a significant time preparing invoices, posting payments, and reconciling mismatches across spreadsheets, extending collection timelines and delaying cash allocation.
Fragmented CRM, ERP, and billing systems contribute to inconsistent or incomplete information, limiting visibility into credit exposure and account status.These gaps hinder forecasting and exception management, resulting in slower approvals and higher DSO. Manual follow-ups further limit scalability and lead to fragmented customer experience.
Industry-specific complexity adds further strain. Healthcare billing requires multi-party verification and compliance considerations, while logistics operations must factor in dynamic pricing and route-linked charges. Field service organisations rely on time-and-materials billing, service-level agreements, and warranty tracking, making consistency difficult to maintain without automation. Without a structured approach to improving the order-to-cash process, organisations face operational strain and reduced cash flow predictability.
These issues highlight why organisations are actively evaluating how to improve order-to-cash process performance through standardisation and automation.
how order-to-cash automation works
Order-to-cash automation replaces manual handoffs with connected, rules-driven workflows that synchronise data across order management, fulfilment, billing, and receivables. These integrated processes help reduce errors, shorten cycle times, and support more stable financial outcomes.
automated invoicing and billing
Automation draws validated order and fulfilment data directly into billing workflows, reducing the need for manual entry and lowering the likelihood of mismatches. Invoices are generated consistently, routed for approval when necessary, and issued promptly. This eliminates delays caused by formatting discrepancies or incomplete information and creates a reliable foundation for downstream collections and cash application.
intelligent credit management and fulfilment alignment
Automated credit checks apply predefined rules to customer data and route approvals through designated pathways, ensuring that orders progress only when criteria such as credit limits or required documentation are satisfied.Aligning fulfilment updates with finance systems also reduces rework and maintains consistency across teams by ensuring accurate, real-time information flow.
automated cash application and collections
Automated cash application matches payments to open invoices using remittance data, bank files, and historical allocation patterns. This reduces manual reconciliation and improves allocation accuracy. Cash-application engines are projected to grow at a 15.2% CAGR through 2030, driven by wider adoption of automated matching tools.
Collections teams benefit from prioritised worklists and structured follow-ups that support faster resolution.By reducing manual reconciliation, automated cash application improves allocation speed and strengthens receivables reporting.
data integrity and single-source visibility
Automation supports bi-directional integration across CRM, ERP, and finance systems, creating a single source of truth. This improves decision-making across sales, fulfilment, and finance teams and reduces errors introduced by inconsistent or duplicated records.
benefits of O2C automation
The benefits of O2C automation extend across accuracy, cycle time, and financial governance. Automation reduces manual effort in invoicing, fulfilment checks, approvals, and automated cash application. This lowers the likelihood of discrepancies, supporting cleaner financial records. More reliable billing cycles strengthen cash flow stability, while accurate allocation enhances visibility into outstanding balances.
Finance teams can redirect time from administrative tasks to analysis, forecasting, and stakeholder reporting. Cloud-based finance tools hold 81.2% of the market. These tools are expanding at 16.8% CAGR, enabling organisations to scale receivables management and limit exceptions associated with manual handling.
building reliable and well-governed order-to-cash operations
Standardised workflows, accurate data movement, and clear governance across credit checks, fulfilment, billing, and receivables drive reliable O2C operations. Automation strengthens auditability by capturing consistent, traceable activity records that support compliance and reporting needs. Well-defined ownership and structured approval paths help maintain operational stability and ensure that processes scale effectively as volumes grow.
how can Infosys BPM help your organisation develop strong O2C automation?
Rather than simply managing transactions, Infosys BPM partners with your finance leadership to build a future-ready finance model. Our approach focuses on accelerating cash flow through predictive revenue assurance, harmonised global delivery, and data-driven decisioning.
By integrating these advanced capabilities, Infosys BPM finance and accounting services, empower finance leaders to move from administrative oversight to strategic business partnering.
Frequently asked question
- What is order-to-cash (O2C) automation and how does it improve cash flow?
- Which parts of the O2C cycle benefit most from automation?
- How does automated cash application strengthen AR and reporting?
- What role do data integration and a single source of truth play in O2C automation?
- What strategic benefits can finance leaders expect from a mature O2C automation program?
O2C automation connects order capture, fulfilment, invoicing, collections, and cash application through rules-driven workflows instead of manual handoffs. By reducing errors and speeding billing and collections, it lowers DSO and improves visibility into receivables and working capital.
High-impact areas include automated invoicing from validated order data, intelligent credit checks, fulfilment-aligned billing, automated cash application, and prioritised collections workflows. These steps remove spreadsheet-driven reconciliations and manual follow-ups that typically slow recovery and create disputes.
Automated cash application uses remittance data, bank files, and matching rules to apply payments to open invoices with minimal manual intervention. This improves allocation speed and accuracy, enhances AR ageing visibility, and supports more reliable forecasting and reporting.
Bi-directional integration across CRM, ERP, and finance systems creates a single source of truth for orders, credit, billing, and payments. This reduces discrepancies, improves exception management, and enables sales, operations, and finance teams to act on consistent data.
Mature O2C automation delivers lower DSO, cleaner financial records, stronger auditability, and more predictable cash flow. Finance teams can redirect effort from manual processing to analysis, forecasting, and strategic partnering with the business.
