Optimizing Cash APplication Automation With Bank Files
Cash Application Automation With The Bank Files
Organizations with large sums of capital that move through their business on daily basis are feeling the growing pressure of needing to increase the speed and accuracy of payment processing.Order to cash solutions may no longer be enough when it comes to streamlining the cash application process. As executive level decision makers search for ways to automate their accounts receivable process with more efficiency and accuracy, cash application software that leverages bank files provides an ideal strategy to invest in.
Cash application automation has quickly become one of the major focal points of any payment process improvement initiative. By enabling near-instantaneous reconciliation of incoming payments, organizations can process, approve and post payments in much shorter timeframe than traditional methods or order to cash solutions allow. Fortunately, restricting implementation of this approach to only manual payments is no longer necessary. Cash application automation with bank files still offers viable, cost-effective solution that streamlines the accounts receivable process.
Reconciliation of incoming payments using bank files involves reconciling the payments before they are posted to the accounts. This enables automated matching of the payments to the originating parties and ensures that only accurate, properly matched payments are authorized for approval and posting. The major benefit of this approach to the accounts receivable process is that the amount of manual processing required is drastically reduced.
With the use of bank files, much of the reconciliation process becomes automated. By leveraging data from provided by the financial institution, manual matching of payments can be virtually eliminated. This provides for much more efficient cash application process, reducing the time that payments are awaiting authorisation from days to just few hours.
By automating the reconciliation process in this manner, organisations can more accurately identify the parties by whom payments originated and lowered the amount of accounts receivable backlog. Additionally, the use of bank files offers improved visibility into the status of payments and allows decision makers to at glance which invoices and payments have been reconciled and approved.
In addition to providing improved levels of accuracy and visibility, cash application solutions based on bank files also offer cost-effective solution when compared to traditional order to cash solutions. As organisations move away from manual approach to payment processing and towards an automated strategy relying on bank files, they can handle more transactions with fewer resources and therefore reduce their costs of accounts receivable processing.
For executive level decision makers, cash application automation with bank files provides strategic way to improve the cash flow process. By leveraging automated reconciliation processes and improved visibility, organisations can quickly and accurately process payments and invoices, enabling them to quickly free up the capital needed to reinvest back into their business.
