Maximizing Cash Application Through Automation: An Executive’s Guide
Digitize Cash Application
As Senior Executives in the finance department, achieving the highest degree of efficiency and accuracy in the cash application process is an essential objective. Companies today are becoming increasingly focused on digitizing their Cash Application, which is an integral part of the Order to Cash (O2C) Cycle. Digitizing Cash Application ensures quicker and more secure transition from Order to Cash, with fewer errors and more accurate data.
Automated Cash Application solutions can aid in streamlining the Order to Cash process, thus maximizing success and minimizing operational costs. With this article, Senior Executives will receive detailed overview of how an automated Cash Application Solution can ease their transition to becoming digitally savvy accounts team.
1. Preparation
Prior to selecting an automated Cash Application Solution, deep assessment of the operating environment should be achieved. An analysis of processes should be conducted to understand how often there are changes and what works best within the set up. Companies should also make sure they have access to stable internet connection, as well as an organized ERP structure and an Accounts Receivable system.
2. Collection of Source Documents
Once an automated Cash Application Solution has been selected and installed, the source documents that are processed through Cash Application should be identified and collected. Source documents include Statements of Account, Cash Receipts and even Copies of Bank Deposits. By creating an indexed system of files with relevant source documents, executives can ensure that the process runs foreseen and with accuracy.
3. Automated Cash Allocation
Once the source documents have been identified and collected, the Cash Application system can be used to automate the cash allocation process. Cash allocation validates the data from the source documents, creating consistent reports and tracking of all transactions. Automated Cash Applications can identify specific clients or customers, as well as all associated transactions. Executives should make sure to select system that allows them to customize invoicing and cash allocation processes, according to their own specific needs.
4. Periodic Verification and Reporting
Once the automated Cash Application system is in place and running, it is essential to monitor its progress and accuracy. Executives should create and implement periodic verification process to make sure that the system is running as expected. Additionally, cash application systems can be used to generate custom reports on demand that clearly illustrate the cash allocation results.
5. Conclusion
Digitizing the Cash Application process is wise decision for any Executive in the finance sphere. By investing in an automated Cash Application system, executives can ensure that their Order to Cash Cycle will run smoothly and with accuracy. With this article, Senior Executives have learnt the essential steps required for successful digitizing of their Cash Application process.
