Cash APplication Risk Assessment: Establishing Total Automation Of C2C Accounting
Digital Solution To Cash Application
Cash application is an important part of the order to cash cycle for organizations. Organizations benefit from accurate, timely and efficient cash application as it has direct impact on financial health. Moreover, business must consider the associated risks of not using software for digital solutions to cash application.
Without Softwaresolution, business can experience operational inefficiencies, lack of financial control, increased difficulty to audit compliance, and high potential of potential errors in the overall cash application process. Compounding these issues is an increased cost of labor as manual work increases the cost of completing the cash application process.
One of the biggest risks that comes with lack of software for digital solutions to cash application is inconsistent customerservice. For example, manual cash application can slow down the ability to update and reconcile customer accounts, leading to delays in cash collection and, potentially, loss of customersatisfaction. Poor customerservice can, in turn, lead to reduction in business cash flow and leave it istruggling to convert orders into cash.
Security risks are also accompanied with manual cash application processes as manual processes can open up the business to the risk of data theft and misuse. Manual processes require verification and validation of payments, making it possible for data to be manipulated or stolen. Moreover, manual processing can fail to properly segregate duties, making it an attractive target to fraud and identity theft cases.
business can also struggle to improve their financial visibility with manual processes. As manual processes lack system integrations, data becomes difficult to access and utilize. Moreover, manual processes also require more data storage, which leads to an increased cost of maintenance and requires additional resources to manage. Without proper visibility, business can struggle to identify issues and opportunities in customer portfolios, making it difficult to make well-informed decisions.
Finally, manual processes can put organizations at risk of being non-compliant with regulatory requirements. Compliances risks can be wide-ranging and heavily depend on the organizations industry and location. Moreover, manual process does not provide secure and repeatable way to audit any customer transaction or process.
By implementing software for digital solutions to cash applications, organizations can benefit from improved operational efficiency, better customerservice, additional financial control, improved security, greater financial visibility and compliance with regulatory requirements. Software for digital solutions to cash application can allow business to improve their financial health and free up resources to focus on high-value activities.
In order to remain competitive in todays digital economy, business must transform the way they handle their order to cash process. Proactively reviewing the risks associated with manual cash application and the potential benefits of automation can help ensure business remain optimally organized and protected.
