Optimizing Your Cash Posting Workflow: A Guide For Executive Level Decision Makers
AUTOMATE CASH POSTING
Prior to investing in cash automation solution, you will want to analyze exactly what cash posting processes an order to cash solution will replace. Ideally, you should look through bank account statements and order documents to determine how you are currently operating. This review will involve looking at your existing workflow and understanding which features in an automated system would add the most value.
Step 2: Select Cash Posting PlatformOnce you have established what business processes the solution should have, you can begin to evaluate commercial off-the-shelf (COTS) cash posting software. Most COTS solutions provide online support and help documentation, making it easy to understand the product?s capabilities. Based on the features your business needs, you can narrow your search down to shortlist of companies whose offerings match those criteria. Furthermore, many COTS systems are compatible with variety of accounting systems which can cut down on the amount of work needed to integrate.
Step 3: Assign an Implementation TeamCreating team of specialists to oversee the transition is paramount for ensuring smooth installation. This team should include representatives from the IT programming staff, accounts payable, accounting, and other areas impacted by the cash automation solution. During the installation process, the team should be available to answer questions and review the software?s output.
Step 4: Set Up Process ImprovementsIn most cases, automating cash posting requires modification of existing business processes. As part of the setup, you should document the existing workflow and map out the new changes. Some standard improvements for cash automation are decreased time for processing payment, which is accomplished through automation of data entry and improved accuracy of postings.
Step 5: Test the SoftwareIt is essential to run pre-implementation testing of the software to ensure the system works correctly. During this process, the implementation team should strive to make sure that the solution integrates with the existing financial software, transactions are correctly posted, data integrity is maintained, and user access privileges are assigned correctly.
Step 6: Establish Protocols for UseThe team should also identify guidelines on how the software is to be operated, who has access and how to report bugs. Additionally, they should create practice scenarios that mimic the typical day-to-day operations the system is responsible for. This can be done by constructing mock data sets or real-life applications.
Step 7: Deploy the SoftwareOnce all the steps of pre-implementation have been completed, the team is ready to deploy the system to their live environment. Proper training should be conducted prior to launching the system as any errors can be detected far more easily in the predictive environment.
Step 8: Measure the System?s PerformanceOnce the system is up and running, it is important to continuously monitor the performance of the cash automation system. This should be done regularly to assess the accuracy, operation, and effectiveness of the software. This can be done by measuring the average processing time and comparing it to the previous manual process the department was using.
By automating their order to cash process, executives can improve their companies operational efficiency and gain insight into their accounts receivable. An automated cash posting solution eliminates manual data entry and provides an efficient solution for quick and accurate postings. Establishing an implementation team and thoroughly testing the solution prior to deployment ensures that the system is functioning correctly and only helps to maintain the system?s performance in the long run.
