Leveraging Automated Cash APplication To Streamline Your Order To Cash Process
New Cash Application Automation Solution
Every modern enterprise is looking for faster, more reliable way to manage the order to cash process and ensure their customers? transactions are handled efficiently. Automated cash application is the solution many are looking for. This comprehensive guide explains how to leverage cash application automation solution to streamline an order to cash process and provides the steps you need to take to get started.
Before we look at how to implement automated cash application, it is important to understand what it is. In short, automated cash application is an automated solution that applies customer payments to open invoices, via one or multiple payment methods. Generally, this entails the system recognizing, identifying and matching payments, as well as any credits and deductions. Automated cash application helps to optimize the cash application process, remove manual steps and potential for error, and improve operational efficiency and customersatisfaction.
Experts, including experienced financial department personnel, all agree that the benefits of automated cash application are many. For instance, this type of solution offers: reduced payment processing times; more competitive customer payment terms; greatly improved efficiency when managing customer accounts; and more seamless customer experience. It also reduces the need for manual data entry, back-office processes, cash flow fluctuations, and effort required to monitor AR and AP receivables.
Now that we have sense of the value of automated cash application, let?s review the steps to get up and running.
Step 1: Prepare your organization: Ensure that all staff involved in the process, especially in accounts receivable, are familiar with the system. it is important to have proper training in place so that everyone understands the process, as well as the responsibilities of each individual.
Step 2: Source suitable cash application automation solution: Your implementation team should research and review the options available, to ensure they find product that fits the needs of your enterprise. Look out for features such as credit and customer entry recognition, automated exception handling, back-office integration, payment processing and reporting.
Step 3: Connect payment methods: This step involves connecting payment service providers and developing integration points with external systems to make sure customer payments are effectively and efficiently processed.
Step 4: Fine-tune and refine: Once you have selected cash application automation solution and integrated it with your existing systems, it is time to set up business rules and conduct validation checks to guarantee accuracy.
Step 5: Monitor and review: On an ongoing basis, monitoring should be conducted to make sure the process is seamless and to spot any issues that might arise. Regular reviews of the system also help to make sure the cash application automation solution continues to meet the needs of your business as it changes over time.
The introduction of cash application automation solution is great way to streamline your order to cash process and reduce the amount of manual effort and manual processing involved. If implemented correctly, cash application automation solution will help to ensure the accuracy, efficiency and speed of the process.
