Order To Cash Software: Ultimate Cash APplication
THE REMITTANCE CASH APPLICATION PROCESS
Cash application is critical part of the end-to-end order to cash process, from the initiation of an invoice through to its payment. As such, an effective remittance cash application process is pivotal in streamlining revenue collection and improving customer experience. In this guide, executives working in finance departments seeking to implement an order to cash software solution will be provided with step-by-step roadmap for ensuring successful cash application.
First and foremost, it is important to understand the functional purpose of any cash application solution. Such software facilitates the receipt of customer remittance information and automates reconciliations of the payments against invoices. The auto-matching of payments against invoices eliminates the costly manual effort that is otherwise required, drastically reducing the amount of time and resources spent by finance departments on these administrative tasks.
In order to maximize the efficiency of the cash application process, executives should consider the range of features offered by order to cash software solutions. At minimum, these features should enable bank statement monitoring, payment entry, automated reconciliation and statement matching, and automated cash application. Additionally, an effective solution should also provide an integrated platform that allows departments to utilize information from multiple sources, such as accounts payable, accounts receivable, contracts, and even the general ledger of the organization.
Once an executive has identified suitable cash application solution, it is time to install the system. It is important to create comprehensive plan for testing the system prior to its full deployment; this helps to ensure that any potential errors in the installation are addressed before the system goes live. Furthermore, executives should also establish training and education programs to ensure that all staff understand the new system, and its features, as well as any changes that have occurred in the order to cash system as result of the new software installation.
After the software has been installed, executives should conduct review of the software?s output in order to verify that it is working correctly. This review process should identify any discrepancies that could impact the accuracy of the cash application process. These discrepancies could relate to discrepancies in accounting periods, currencies, and data entry or coding errors. Once any errors have been identified, they should be rectified prior to any further stages in the deployment.
Finally, it is imperative that executives closely monitor the performance of the cash application solution. This should include the establishment of performance trackers to measure the accuracy of the system’s output and identify any potential areas of improvement. Executives should also review customer feedback regarding the speed and accuracy of invoice reconciliation and payment processes. In this way, executives can ensure that any issues are addressed quickly and any necessary improvements are implemented.
In sum, cash application is an essential part of the process for collecting on invoices. It is imperative that executives carefully manage the implementation of an order to cash software solution in order to enable this process in an efficient, accurate, and cost-effective manner. By following the steps outlined in this guide, executives can ensure that the implementation of new cash application system is successful.
