Optimizing Cash On Hand Through Automated ARDeduction
Ar Deduction
At the heart of successful decision-making in C-Suite, particularly in the finance department, lies the need for maintaining prudent cash control. Cash on hand has become increasingly more important in managing corporate liquidity and, as result, improved visibility into Accounts Receivable (AR) has become essential for minimizing risk in an organization. To this end, reliable automation of AR deduction has become increasingly necessary for reducing tedious manual paperwork and for ensuring timely payments.
Today, there are many cloud-based solutions available on the market that can help automate the Accounts Receivable deduction process. Cloudbakers’ comprehensive AR deduction application, for instance, has been designed to enable real-time accounts reconciliation, enhance visibility into deductions, and increase the overall efficiency of AR deduction operations. Here, we provide practical guide, outlining step-by-step procedure for implementing automated AR deduction into an Order-to-Cash process using Cloudbakers’ Application.
1. Verifying Accounting Entries: Before proceeding with implementation of automated AR deduction, it is important to verify that all incoming and outgoing accounting entries are up-to-date and accurate. This includes double-checking invoices, payments, credits, and other documents related to the customers order-to-cash process.
2. Setting Up GL Coding: In order to navigate the implementation of automated AR deduction, it is necessary to set up General Ledger (GL) coding system. This ensures that each transaction is classified properly for accounting purposes, so that income and cost of goods sold will be properly accounted for when using the AR deduction application.
3. Automating AR Calculations: Once the GL coding is set up, the AR deduction application can be used to automate calculations of deductions, credits, and rebates from customers? payments. This ensures that all AR deductions are accurately calculated and recorded without any manual paperwork.
4. Creating Invoices: The application also enables users to simplify the creation of invoices. Instead of having to manually fill out each customers invoice, invoices can be generated quickly and accurately with the help of the AR deduction application. Additionally, the application can be used to set up automated payment reminders when invoices are due, as an effective way to ensure prompt payment by customers.
5. Settling Disputes: When disputes arise regarding discrepancies between actual and expected payments, users can now easily settle them using the AR deduction application. This eliminates the need for tedious manual paperwork in troubleshooting disputes and helps streamline the reconciliation process.
6. Reconciling GL Accounts: critical component of the automated AR deduction process is the ability to reconcile accounts quickly and accurately. The AR deduction application enables users to automatically reconcile General Ledger accounts, thereby freeing up valuable time to focus on more strategic efforts.
Conclusion
Leveraging reliable automated AR deduction solution can provide C-Suite considerable degree of control and visibility into Accounts Receivable operations. This, in turn, helps to reduce operational costs, minimize manual paperwork, ensure accurate and timely payments, and, ultimately, optimize cash on hand. Cloudbakers’ comprehensive AR deduction Application can be valuable tool for achieving these objectives. By following the step-by-step procedure outlined in this guide, executives in the finance department can now quickly and easily implement automated AR Deduction into their order-to-cash process.
