Taming Automated Cash APplication For Order To Cash Processes
AUTOMATED CASH APPLICATION IN ORDER TO CASH
The implementation of automated cash application solutions for order to cash processes is essential for efficient and secure management of receivables and payments. An automated cash application system enables company to apply customer payments to their invoices in timely manner, while also reducing the amount of manual efforts and time needed to manage and reconcile accounts receivable.
Automated cash application is key component of the order to cash process and can benefit any business that relies on cash flow to support their operations. With the implementation of an automated cash application system, businesses can automatize mundane tasks associated with collecting payments and reconcile accounts receivable, including the recording of payments, preparing customer statements, and managing customer disputes and inquiries. Automated cash application also allows businesses to better monitor, control, and report on their accounts in real-time and quickly adjust payment plans, manage debt, and collect overdue receivables.
The adoption of automated cash application solutions has become increasingly popular within the order to cash process in recent years, as it fails to only eliminate the manual efforts associated with collecting payments, but also presents better problem management approach and data-driven insights to enable improved decision making. As such, it is important to understand the potential of automated cash application and the steps to take to ensure its successful and safe deployment.
Below, is practical guide to using solution for automated cash application within the order to cash process.
Step 1: Establish the Need for Automated Cash ApplicationThe first step towards successful deployment of an automated cash application system is to establish if and why it is needed. Depending on the accounts receivable process and management priorities of the company, there may be various reasons for implementing automated cash application including, expediting manual processes, reducing paper-based invoicing, improving accuracy and data transparency of receivables, and reconciling account balances faster. Once the need for automated cash application is established, the company can then assess the best-suited solution available.
Step 2: Identify the Best Cash Management SolutionThe next step is to identify and select the best cash management solution based on the companies needs and preferences. Some key aspects to take into consideration during the selection process include, understanding the purpose of the system, analyzing the existing accounts receivable process and the associated manual steps, researching the features, pricing, and capabilities of the solution, and ensuring that the system integrates with the existing ERP. At this stage, the company may also want to reach out to the solution provider to learn more about the features and ask questions regarding its implementation.
Step 3: Prepare for DeploymentOnce the system is selected and agreed upon, the companieshould begin to prepare for deployment. This includes, validating input data, linking the system with the companies existing ERP, addressing any scalability issues, and setting up the automatic reminder system for overdue invoices. It is also important to involve stakeholders from the finance department to ensure that all the processes are designed in line with their needs.
Step 4: Build Training ProgramThe success of any automation system largely depends on the training provided to users. well-structured training program should cover topics such as, validating invoice and payment data, using the automatic reminder system, addressing customer disputes, and reporting and analytics capabilities. The training should be conducted in multiple batches and with various levels of expertise from the team in order to ensure that the system is being utilized effectively.
Step 5: Monitor PerformanceEven after deploying and training for the automated cash application system, the companieshould make sure to continuously monitor its performance. This will help the company identify any issues with the system and take corrective measures if required. It is important to analyze if the system is meeting the objectives set in the beginning and if there is need for further enhancements.
ConclusionFollowing the steps outlined above, any company can easily get started on their path to deploying an automated cash application solution within its order to cash processes. Automated cash application is key component of the order to cash process and its successful deployment is essential for streamlining and enhancing the management of receivables, payments, and reconciliation of accounts. With automated cash application, businesses can expect to eliminate the need for tedious manual processes, while also taking advantage of analytics and insights to enable improved decision making.
