Order To Cash Automation From A C-Suite Perspective


Automation of the order to cash process is becoming an increasingly appealing option for companies seeking streamlined approach to cash application. With an automated global cash application solution, businesses can optimize operations to reduce costs and shorten their cycle times.

Before integrating any automated global cash application solution, it is important for business to gain an understanding of the process and potential obstacles. This guide provides an introduction to the benefits of global cash application solution and offers step-by-step framework for successful integration and utilization of the system.

Introduction to Automated Global Cash ApplicationAn automated global cash application solution offers numerous advantages to organizations seeking to improve or modernize their order to cash process. This software typically integrates with the organizations external accounts, such as those of banks, card processors, and other financial institutions. These connections feature two-way communication that enables immense accuracy while drastically reducing manual entry.

The system calculates and reconciles payments on global basis, allowing payments to be posted and applied correctly in compliance with local governmental rules and regulations. This alleviates the daunting task of attempting to reconcile and manage payments in manual, decentralized system.

Essential Benefits of Automatedglobal Cash ApplicationOne of the vital benefits of an automated global cash application solution is the significant reduction in administrative overhead. By automating the various steps within the process, organizations can reduce the amount of time and money previously spent on manually entering, checking, and reconciling payments. In addition, the integration of the system with companies existing accounts ensures continuous, secure, and direct communication between the accounts.

Furthermore, an automated global cash application service can provide organizations with powerful data and documents including payment summaries, audit trails, and cash application statements. Accurate data and documents can serve as vital sources of financial intelligence and ensure that all business decisions are based on thoughtful and reliable information.

Step-by-Step Guide to Automated Global Cash Application1. Prioritize system and software requirements. Consider long-term needs and goals, research vendors and platforms, and select platform that can accommodate the breadth and depth of organizations requirements.

2. Gather electronic financial records including documents necessary to electronically transfer payments (batch files, ACH files, SWIFT files, etc.). These documents should be sent securely to the new vendor.

3. Train personnel on the basics of the new system and processes and clarify any roles that need to be filled to successfully utilize the system.

4. Connect all external accounts to the system. Provide secure and direct communication between accounts, establish transfer protocols and payment authorizations to minimize manual entry, and configure the system for automatic payment posting.

5. Testing of the system should be conducted in several stages: functional, integration, and UAT. At the functional level, all components of the system should be tested individually. At the integration stage, all components are subject to testing as one entity. UAT involves simulations of expected payment scenarios with live data.

6. Consolidate records into global locations. Decentralize systems whenever possible, establish rules and processes for posting accuracy, and reconcile cash postings to ensure they match with recorded financial documents.

7. Incorporate dashboard or dashboard features into the system to enable filtering and sorting capabilities, streamline reporting, and provide an overview of financial activity.

ConclusionAn automated global cash application solution is an invaluable tool for organizations looking to improve their order to cash process. The platform offers number of advantages ranging from reduced administrative costs and improved accuracy to wealth of data and documents for businesses to leverage for financial intelligence. Following this guide will ensure that organizations have successful and seamless implementation of their automated global cash application.