Operational Performance Enhancement Through Automated Cash APplication Software
Automated Cash Application Cash Application Software
Every business financial operation to certain extent, hinges on the successful receipt of payment from their customers. Thus, it is vital that their staff has the capability to quickly and accurately complete process of cash application to correctly match received payments to the open invoices in order to quickly ensure the cash balance and the accounts receivable ageing report is true and accurate.
In todays competitive marketplace, manual cash application processes are insufficient for maximizing operational performance, given their reliance on labor-intensive methods that fail to provide real-time feedback on customer accounts receivable ageing and cash balance. Automated cash application software, such as Order to Cash (O2C) software, can go long way in eliminating the manual operations of cash application and help enhance operational performance.
Whether small business or enterprise, automated cash application provides numerous benefits. Firstly, by implementing such software, time consuming, manual cash application tasks can be eliminated and the staff assigned on such tasks have spare capacity to apply themselves on other core business activities all while reducing the risk of human error. Secondly, faster cash application processing leads to improved customerservice and reduced ‘days sales outstanding’ (DSO). Thirdly, faster cash application processing can help identify any discrepancies, such as pricing or ship-to issues, and help smoothen customer relations. Furthermore, improved cash visibility, along with the ability to track customer invoices status, will provide CFOs with greater control over their daily financial activities.
As for the automated cash application software itself, the O2C software is designed to support faster and more reliable processing. The software can scan incoming customer payments from many different sources and utilizing various rules, compare them to invoices within the system. This automatic comparison also helps to identify unapplied payments and assign them quickly and accurately. Moreover, the software will use rules to decide where an amount of cash should be applied to and can auto-generate several automated transactions including the creation of remittance accompanying the cash.
To conclude, implementing automated cash application software, such as O2C software, can help business improve their operational performance. By freeing up staff capacity, increasing customerservice, improving cash flow visibility and cutting down on manual application tasks, the O2C cash application software can provide CFOs with greater control over daily financial processes while allowing them to make well-informed decisions in timely manner.
