The Cost Of Limited Cash APplication Automation
CASH APPLICATION ACCURACY USING ROBOTICS
In the Order to Cash (O2C) process, cash application is typically the last step in ensuring goals for efficiency and accuracy are met. Manual processes, along with human-dependent automation, are limiting the process from reaching deeper levels of efficiency. Robotics process automation (RPA) can provide more satisfaction and accuracy while simultaneously eliminating the need for expensive manual labour hours.
Cash application is the foundation of successful financial management, and the accurate and timely recording of cash receipts is key importance. Traditional manual approaches often result in considerable time needed to review, process, and apply payments. This can lead to errors and more complex problem? such as impacting customer relations, increasing finance costs, administrative overheads and widening the margin of dispute.
Upskilling of staff and hiring additional manpower to keep up with rising business complexities further complicates the cash application process. With RPA, employees can eliminate mundane and repetitive activities, allowing focus on strategic tasks and improving efficiency of employees.
RPA software can calculate accounting data, update General Ledger systems, extract or generate financial reports without manual intervention. Additionally, robotic tools can detect and resolve payment and order mismatch from transaction data to immensely reduce the manual work and errors as compared to manual cash application.
Errors in cash application can put strain on working capital and liquid assets, as well as create transactional discrepancies that need investigation.Those processes that involve resolving issue, such as match and mis-matching, cash allocation, unpostable identification and resolution and follow up for collections can take hours to manually resolve. While eliminating the need to manually review, audit and reconcile these discrepancies, robotic automation can enable faster, more reliable correct resolution leading to increased consistency and accuracy as well as an improved customer experience.
Finance executives are able to direct their resources to more profitable tasks and refocus their operations to be customer focused. Furthermore, RPA is capable to use machine learning and repurpose data to make predictions, thus resulting in more accurate and timely decisions.
By leveraging robotic process automation and understanding the potential it holds, the O2C process can benefit immensely in terms of accuracy and efficiency. This not only provides finance executives with the necessary financial data in order to make decisions and prepare for the future, but also can help build relationships and trust with customers.
