The C-Suite Guide To Automated Cash APplication Processing
AUTOMATED CASH APPLICATION PROCESSING
With the ever-evolving changes and the emergence of Order to Cash solutions, organizations in the financial sector require robust and automated cash application processing system to optimize AR and subscription-based business models.
Cash application processing and automation can streamline the manual process of assigning payments to companies invoices and integrate disparate systems, allowing for checks and digital payments to be categorized automatically and deposited without the intervention of your Accounts Receivable department.
Organizations can benefit from automated cash application processing through:
1) Improved cash forecasting: By eliminating the manual intervention of manually assigning payments to invoices and integrating disparate systems, real-time data can be used to create cash forecasts. This will aid in distinguishing between short-term fluctuations and long-term trends for more accurate cash forecasts.
2) Reduced operational expenses: Automated cash application processing reduces operational costs associated with manual processing of payments and ensures that payments are recorded properly and quickly. This will collectively add up to tangible cost savings.
3) Enhanced customer experience: It is well-known fact that customers expect accurate and timely invoicing, timely payments, and other pertinent account details, along with superior overall customer experience. Automated cash application solutions reduce the risk that payment errors will occur, increase customer satisfaction and elating speed to cash.
The following step-by-step guide outlines best practices for leveraging automated cash application processing:
? Step-One: Identify and understand the core objectives of your business. Ask yourself whether you desire to automate process or bridge the gap between multiple systems.
? Step-Two: Research cash application processing solutions. Make sure the system you choose is equipped with automated collections software and speaks to the needs of your business.
? Step-Three: Set-up the system for your Accounts Receivable department. Be sure to communicate the desired key performance indicators so that staff can track their progress.
? Step-Four: Ensure that company policies and procedures are documented, communicated, and adhered to.
? Step-Five: Train your staff on the automated system. Educate them on the functionality of the system, its importance to the Accounts Receivable department, and how they can improve their day-to-day operations.
? Step-Six: Monitor and analyze ongoing cash application activity. Use reporting tools to check on the accuracy and effectiveness of the system.
? Step-Seven: Rethink and refine the system if necessary. As cash application processing operations change, explore ways to modify the system for better efficiency.
Automated cash application processing offers your organization revolutionary cost-effective solution for integrating and automating various financial and accounts receivable operations. Streamlining the process of collecting and applying payments from customers, this system is an ideal way to ensure accurate transactions and maximize cash flow. Organizations that are serious about scaling their success should consider the advantages of an automated cash application system as part of their order to cash software.
