The Risks Of A Manual Cash Posting Process
AUTOMATE CASH POSTING
For any company, an automated cash posting process is an essential part of staying on top of payments and meeting customer service targets. The risks of relying on manual cash posting versus utilizing software to automate the process have dramatic impacts on the payment and accounts receivable process, as well as customer satisfaction.
Companies that rely on manual processes are prone to errors caused by incorrect coding, double data entries, and lost paperwork. These inaccuracies can result in discrepancies between the customer?s payment and the invoice, costing the company costly resourcing hours and an increase in receivables outstanding. In some cases, companies without an automated cash posting process may not be able to reconcile discrepancies in timely manner, leading to potential fines from commercial customers and potential loss of business.
In addition to financial and administrative risks, manual cash posting also carries greater risk of security breach. Often times cash postings are composed of confidential information such as customer bank accounts and credit card numbers. These sensitive pieces of data stored on paper or stored in an unsecure system can make them more likely to be hacked. Companies without software to automate cash posting must consider how best to store this data securely.
Order to Cash software goes long way towards addressing these risks and inefficiencies of manual cash posting. An automated process enables accuracy by eliminating errors through real-time validation and reconciliation with the customer?s payment. It also shortens the payment cycle by taking out time-consuming steps from the process, such as keying in data from customer payments and issuing customer statements. Automating the cash posting process can also save the company valuable resources by reducing manual work and eliminating duplicate entries. Furthermore, comprehensive Order to Cash software solution stores confidential customer data in secure electronic process, which can be safely protected through encrypted security protocols.
Overall, leveraging software to automate the cash posting process can be huge benefit to any organization, allowing them to reduce costs, shorten the payment cycle, and improve customer experience. Investing in software to address cash posting issues can save time and money in the long term by taking out grueling manual steps and improving accuracy, while resulting in secure process that keeps confidential data protected.
