Tapping Into Software To Enhance Cash APplication
ENHANCE CASH APPLICATION
A smooth and timely cash application process is essential to keeping an efficient Order to Cash system. Every Finance Executive is interested in maximizing operational performance while eliminating risks associated with manual cash application processes. But, how can cash application be improved with software?
Cash application software essentially helps manage, track, and apply payments in timely manner. Such software can reduce days sales outstanding (DSO) or bad debt losses and enhance relationships with customers. Automated cash application also helps ensure data accuracy at much lower cost than manual cash application processes.
When evaluating cash application software, the focus should be on the working capital benefits and technology infrastructure metrics. good software should provide the ability to easily access and update customer information, automate manual processes, and provide quality assurance for payment accuracy. Additionally, features such as embedded workflow logic, transaction level auditing, and the ability to apply customer payments in coordination with contractual terms is essential.
In addition to these key features, CFOs should look for scalability and access to real-time reporting modules. By relying on cloud capabilities, firm can quickly and easily integrate disparate sources of data and create comprehensive view of the customer. This makes it easier to track customer service issues and delivery problems, helping to identify any discrepancies as early as possible.
To ensure successful cash application system, Finance Executives should also consider the security and safety of their systems. Performing due diligence on vendor’s credentialing, encryption of data, and secure access is critical. Well-executed software implementation will help protect the firm both financially and operationally.
As the increasing complexity in accounting and regulatory requirements continues to mount, cash application is transitioning from being an operational backwater to becoming strategic function. By investing in an automated cash application system, CFOs and financial professionals can maximize business performance and operational efficiency as well as ensure compliance with an ever-evolving regulatory landscape.
