Solving Cash APplications With Software: Enhancing Operational Performance
AUTOMATING CASH APPLICATIONS
Executives from the C-suite level have the mandate to make decisions that improve operational performance, efficiency and accuracy of the order to cash process. Software solutions are popular option for streamlining the order to cash process while enabling open collaboration, speedier workflows, enhanced automation, and expanded visibility across the transaction pipeline.
Organizing and successfully applying cash requires an orderly routine, detailed information and swift communication between the purchaser, the customer and the accounts receivable personnel. Any disconnect in this process results in duplicate cash applications and incorrect account postings. Manual processing of application and receipt of payments can be error-prone and inefficient; consequently making it difficult to process higher-value orders. To effectively tackle these issues, companies seek to automate their cash application process.
Software solutions allow customers to directly enter the payment details such as bank account numbers, payment dates etc., and match them to unpaid invoices. Automated cash applications can alert the accounts receivable department for any discrepancies, or for any missed cash application such as unmatched vendor payments, or in case of customer payment not being applied to any of the unpaid invoices. The software also equips teams with the ability to locally view, manage and accurately reconcile all payments received; and assign the payments to their respective invoices.
Finance executives who seek to resolve inefficiencies with their cash application process need to consider few aspects before selecting software. Most software packages have extensive functionalities that are suitable for enterprises of every size. These packages also provide variety of customization options, usually tailored to the customer?s specific requirements.
Additionally, secure hosting of cash application software should also be considered, to ensure the safety of confidential financial information. Furthermore, reliable software should take into account system compatibility with the ERP or financial systems in use. Payment reconciliation should run in the background, allowing customers to assess information from different sources and keep their accounts up to date in real time.
Finally, cash application software should have comprehensive audit trail. This audit trail enables an organization to track the original source of transaction, together with any changes made while manipulating the data. It also provides complete record of payment processes which can be audited, saved or exported.
businesses that implement cash application software are likely to benefit from greater efficiency, reliability and accuracy in their financial operations. Automating cash applications can be considerable cost-saving exercise, while simultaneously enhancing operational performance.
Once software solution is selected and the process automated, companies can look forward to reducing manual error and manual workload, minimizing countless labor hours and reclaiming money that has traditionally been lost due to incorrect cash application processes.
In conclusion, software for automating cash applications provides an efficient way to enhance operational performance in the order to cash process. By mitigating the risks associated with manual cash processing, executives can expect highly secure, reliable and accurate financial system.
