A Dangerous Gamble: The Risk Of Not Using Auto Cash APplication Processing Software

Auto Cash Application Processing Software

Automating and streamlining the order-to-cash process is of paramount importance for ensuring the fiscal health of any organization. Those responsible for overseeing financial operations such as the C-suite suite and finance executives must understand the risks associated with not using auto cash application processing software and consider how such decision can lead to detrimental consequences.

The order-to-cash process begins when customer places an order with vendor or supplier and is concluded when payment of said order is received. Virtually every business?regardless of size?engages in this process which involves various data points and tight deadlines that require accuracy and efficiency. Automating the process with robust software can help reduce manual errors and reduce the time it takes to collect payments.

Forgo using auto cash application processing software and organizations will have to rely on manual processing and filing, such as when invoicing, allocating payments, collecting payment remittance data, and communicating with customers and banking partners. Without automated software, the accuracy of data entry is highly dependent upon the quality and accuracy of human capital, thus creating potential organizational risks by way of incorrect data entry or missed deadlines. This can lead to costly liabilities, such as the generation of manual errors that may result in duplicate entries, misallocations of payments, underpayments, and/or late payments.

In addition to capacity risks and data accuracy, manual approaches to order-to-cash processes are also time consuming and tedious. Manual, labor-intensive processes require significant resources and staff time for even the smallest projects. This time can be better utilized in other value-add areas of the organization. Automated software, on the other hand, helps finance teams save time and resources, reduce operational expenses, and improve customerservice.

The benefits of auto cash application processing software are far-reaching. One key advantage is it obtains multiple approvals and transactions; enforcing processes clarity and accuracy to an even greater degree. The software helps to standardize processes and gives finance teams greater control over accounts receivable, payment collection review and control, notifications, reminders, and more.

The central value derived from cloud-based software is that it allows scalability and growth as organizations streamline their order-to-cash process and track customers? payment status in real-time. Furthermore, the interactive dashboards built into cloud-based systems help finance teams forecast and adjust their collections process in response to seasonal changes in demand. Finally, cloud-based software enables finance executives to access key financial performance indicators that provide insight into cash flow trends.

Auto cash application processing software is an essential tool for streamlining and automating the order-to-cash process. Finance executives must be aware of the risks associated with foregoing such software, such as manual errors and missed payments, as well as the cost-savings and organizational benefits cloud-based software can bring. Not leveraging the automation provided by software leaves organizations exposed to risks, jeopardizing their fiscal health.