Maximizing Efficiency Without Automated Cash APplication
Automatic Cash Application Tool
As finance executive, you understand the importance of having efficient and accurate cash application processes to minimize costs, accelerate billing and order to cash workflows, and maximize working capital. Without automated cash application, important items such as matching customer payments to the open orders, collections, dispute resolutions and poor overall visibility can become costly hurdles.
Cash application automation is critical skill in any finance group. It addresses number of objectives that are central to optimizing cash flow and reducing Days Sales Outstanding (DSO). Cash application processes need to be timely, accurate and consistent in order to generate an Integrated Accounts Receivable (AR) platform with deep visibility into customer data.
Without the use of software for automated cash application, there are number of risks faced by company. One of the most pressing is the lack of vendor cash transparency. Finding the organizations aging weekly balance is challenging, hindering the team from having an accurate view of their financial standing. Errors are especially vulnerable without automation, as manual entries are prone to errors, diminishing the accuracy of the accounts. Any issues that arise without automation can cause long-term revenue losses.
In addition, manual cash application can result in slower collections, as customer payments are not received and applied quickly. Overdue payments and disputes can also result, leading to unapplied payments, reducing customer goodwill. Furthermore, manual cash application can be easily overwhelmed by large payment volumes. The strain of large workload can lead team members to be less accurate, leading to errors within the accounts receivable process.
Given the risk of missing cash details with manual cash application, it is essential for finance executives to consider the use of software for automated cash application. Automated cash application can seamlessly process incoming invoices and customer payments, enabling team members to take proactive approach to receivable management rather than reactive one. Automation expedit is the reconciliation of customer invoices and payments, allowing errors to be detected and corrected in timely manner. Finished processes are also speeded up, ensuring an organization can pay invoices quickly and efficiently.
In conclusion, automated cash application is essential for finance departments seeking an uninterrupted order to cash process. Without it, any number of risks can arise, such as the vulnerability to errors, slower collection cycles and larger dispute volumes. With the right software in place, your cash application process is automatically and accurately executed, allowing teams to access vendor cash visibility and build an Integrated AR platform. Automation not only increases the order to cash process efficiency, but also frees up team members from tedious manual activities.
