Cash APplication Automation: Reducing Risk Through Software
Cash Application Automation Email Remittances
The order to cash process encompasses range of activities from the established sale of goods to actual payment received. As part of this process, cash application software automates the critical step of cash application, in which funds received are allocated to the right customer and invoice, thus simplifying and accelerating the operations. The failure to adopt software for cash application automation can cause great deal of risk to business, particularly when email remittances are involved.
From C-suite perspective, the primary risk of not using software for cash application automation is that incoming payments may not be accurately or reliably identified and allocated. This is because without the automation processes, there may be no clear way to reconcile incoming payments to the payments stated on the original sales document. As result, invoices remain unpaid for long periods of time or are paid to the wrong customer, resulting in frustration and loss of revenue. Additionally, manual handling of payments heightens the risk of errors and misdirected funds, as manual handling leaves room for the potential of human error.
Another risk of not using cash application automation is that the process becomes increasingly time-consuming. Without automated processes, staff have to manually check each email remittance for accuracy and allocate the payments, leading to time-consuming manual data entry. This results in decreased productivity, as team can spend hours on payment reconciliation and applications and lack the time to provide value-added customerservice or provide insights.
The strain on company resources is further magnified, as manual processes require additional personnel and infrastructure along with more rigid schedules to accommodate both customer and staff needs. These costs all add up and reduce the available resources for other activities.
The risks of not using software for cash application automation email remittances nullify the potential gains from the process, leaving business with weak order-to-cash process.
Those companies that have adopted automated processes for cash application see number of positive outcomes due to the process. Automation removes the potential for human error and streamlines the process of payment allocation, reconciliation and applications. It also gives staff more time to focus on increasing customer value and insights. Additionally, it eliminates the need for additional team members, equipment and processes.
Software for cash application automation clearly offers much to business looking to reduce risk in their order-to-cash process. Email remittances are an essential part of the process, and using automated software to manage these can provide much-needed boost and improved process efficiency. Companies that fail to use software for cash application automation and email remittances in their order-to-cash processes do so at their peril, as the risks associated with the manual process can have significant negative impact on business.
