Impact Of Not Using Software For Cash APplication Automation
Cash Application Automation Rate
As the Order to Cash (OTC) transactions drastically increase in complexity and sophistication, Finance Executives often find themselves under immense pressure to minimize time taken for processing. Cash application automation, through the use of specialized software, is seen as viable solution to putting an end to manual processing. Not utilizing software for cash application automation presents host of risks that can stunt organizational growth.
For starters, manual processes towards the OTC cycle become labor intensive, time consuming and costly. When the application to record and process the payments is manual, not only do the transactional data validation take up an inexhaustible amount of effort and resources, it is also prone to human error. Receipt of payments from customers becomes taxing practice and can result in incomplete documentation, missing discounts and duplicate payments. Moreover, manual processes jeopardize the security of customer data, which could potentially lead to legal penalties in various jurisdictions.
In terms of Auditing, manual processes provide no clear audit trail, which tracks data and captions it for future reference. In software-driven automation, payment details, discrepancies and required adjustments are conveniently recorded and the entire traceability of transactions is completely restored. Without cash application automation, disputes from customers require additional handbook research to reach resolution, thus detracting valuable resources from more core tasks.
From customer experience standpoint, repetitive manual processes can take up great deal of time, resulting in delayed responses to queries and complaints of customers. Automation grants the ability to quickly identify issues and mitigate delays, enabling seamless and satisfactory experience. In highly competitive settings, this translated to increased loyalty and improved customer retention rates.
Finally, time is of the essence when it comes to cash flow. By automating the OTC process, financial institutions can swiftly identify customer payments and process them faster, leading to higher customersatisfaction, cash liquidity and flow.
It is clear that cash application automation through the use of software provides vast array of advantages that can propel an organization to higher efficiency and productivity. Investing in an automated OTC process mitigates risk and enables an acceleration of payment cycles for improved customer experience, loyalty and cash flow.
