Maximizing Cash APplication Performance: The Risk Of Not Using Software
Auto Cash Application
Cash application is central to any successful and efficient order-to-cash process. Aside from the obvious benefit of accelerating the period it takes to receive payment, it plays crucial role in improving the accuracy and visibility of customer payment activity. Companies who are at disadvantage to manually apply cash realize that they’re missing out on significant cash flow opportunities, better customerservice, and lower costs.
Organizations that do not utilize software to automate their cash application processes, find themselves evaluating hundreds of payments across multiple customer accounts each month. This process is often manual and time consuming, often leaving cash unreconciled for days or weeks and leaving your customers uncertain of the accuracy of their payments and their expected balance. Manual cash application can lead to misapplied payments, resulting in misallocated deductions, wrong customer balances, and customerservice inquiries, costing companies thousands in time and labor.
When capitalizing on the benefit of automated cash applications, your organization can utilize the various features that come with Softwaresolutions. These solutions specialize in automating cash focus task functions and include features such as cash pools, consolidated cash statement, customer history, voucher generations, and dispute notifications. Financial institutions are also able to optimize their customer onboarding process to easily collect necessary customer information that corresponds to the payment process of their customers.
Additionally, automation of processes helps companies reduce the amount of staff needed to manage the process, reducing the need to hire new staff or train existing staff to be able to manage these cash focusing tasks. As well as reducing payroll costs, automated cash application solutions also bring reduced cost of oversight, supplies, and decrease in errors and inaccuracies resulting in cost savings and customersatisfaction.
Finally, automation of cash application functions enable teams to get an improved view of customer payment activity, allowing for more visibility into incoming invoices and customer payments in their system, enabling them to generate better insights into cash flow and customer payment.
By implementing automated cash application processes into your organizations order-to-cash system, the risk of not using software for the auto application of cash can be eliminated. The desired result is increased cash flow, decrease in labor and payroll costs, improved customerservice, and better customer visibility and insights. Organizations not adopting cash automation are likely to miss the benefits of effective cash performance and run the risk of losing significant amounts of cash flow, reducing customersatisfaction and trust, and increasing labor costs and overhead costs.
