Modernizing The Order To Cash Cycle With A Solution For ARCash APplication
Ar Cash Application
With plenty of processes to consider, streamlining the order to cash cycle can help improve the overall efficiency of an organizations financial operations while offering the business the agility needed to remain competitive and grow. As an executive in the finance department, it is your duty to ensure that your existing systems and processes are up-to-date and sound. Investing in smart solution for accounts receivable (AR) cash application can go long way in strengthening the order to cash cycle.
What Is AR Cash Application and How Does it iserve the Order to Cash Cycle?
AR Cash Application is an efficient and integrated Softwaresolution that automates tedious manual processes in the order to cash cycle. This software enables business to effectively apply, manage and report on customers? incoming payments. Cash application, when part of comprehensive order to cash solution, offers production and financial strengthening the organizations approval and invoicing procedures while reducing the risk of human error or fraud. Moreover, by streamlining the payment processing process, business can contain the costs associated with administering and controlling throughout the order to cash cycle.
Effectively Applying Payments with AR Cash Application
To get the best out of an AR Cash Application solution, organizations must ensure its optimal use within the order to cash cycle. Here?s step-by-step guide to effectively using this technology to improve the converging processes involved in the cycle:
1. Collation and Management of Receipts
With AR Cash Application, receipts are collated and directed to the appropriate locations for further processing, thereby eliminating the need for manual data entry. It automates the receipt entry process and supports multiple receipt entry formats. Its advanced OCR (optical character recognition) technology automatically reads receipts from emails, faxed documents, scanned documents, and more.
2. Automated Matching of Payments
The software automatically matches payments received with client data from the ERP system, ensuring accuracy and keeping the process free from potential errors. Business users can easily review payment applicability suggestions, enabling quick resolution of discrepant payment entries.
3. Payment Application
After the payments have been identified and matched, the AR Cash Application software automatically applies them to the correct invoices, eliminating costly and time-consuming manual processes.
4. Early Payment
The solution offers feature-rich payment methods such as early payments, cash discounts, and settlement discounts, making it easier to manage customer relationships and encourage on-time payments.
5. Automated Reconciliations
The sophisticated software features powerful tools for automated bank statement reconciliations, helping organizations save time and money on manual reconciliation processes.
6. Reporting
Finally, the AR Cash Application solution offers up-to-date access to invoice, payment and collection reports to help business generate detailed analysis of their receivables and payment processing activities.
Harness the Benefits of AR Cash Application in the Order to Cash Cycle
Organizations using an AR Cash Application solution will enjoy improved operational efficiencies, lower processing costs, greater levels of security, reduced fraud risk, and improved analytics capabilities. Furthermore, cash application also welcomes advantages such as decreased invoice disputes, better visibility of payments, faster reconciliations, and improved customer relationship management.
When investing in AR Cash Application as part of an order to cash cycle solution, organizations should look for one that maintains liquidity, ensures compliance, promotes agility, and delivers an overall enhanced customer experience. An ideal solution for AR Cash Applications should be fully integrated with an organizations existing ERP systems, offering comprehensive tools for managing the entire order to cash cycle from end-to-end. Investing in comprehensive and robust Order to Cash Solution can go long way in improving efficiencies within the finance operations and should be considered seriously by executives for its capability to simplify, streamline, and improve the order to cash process, as well as its potential to automate manual processes and enhance the customer experience.
