Remove tedium and inefficiencies from manual cash application processes. Make AR more accurate. Boost revenue while delighting customers.
Companies want to realize revenues quickly when customers increase their order volume – but to do so, the cash application process needs to respond with agility. Suppose, for example, a customer makes multiple orders. If the company handles this manually, the customer’s credit limit might not be up to date and the new orders wouldn’t go through until the finance team recognized a payment. It’s bad enough that such situations lead to unnecessary resolution costs. Worse, they jeopardize the customer experience – and that can mean cancellations.
What’s more, achieving accurate cash application manually is painstaking and time-consuming. Consider the kind of back-office support the process takes. Staff must deal with exceptions handling, preparing refunds and direct-debit proposals. They must also generate customer statements, respond to collection queries, and apply reconciliations. Dealing with all this can take up as much as half their time, which delays payment posting and drives down accounting efficiency. Yet while automating the cash application process offers real opportunities for improvement and cost reduction, firms often don’t move forward for the following reasons.
- Unstructured data from disparate sources – often delayed and incomplete –that arrives in accounts receivable (AR) in the form of invoices, payment methods, bank statements, remittance advice information, and credit. And because AR teams rely on information from external and internal stakeholders, they can only control data quality to a limited extent.