The Risk Of Not Automating Cash APplication


In world of increasingly complex Order to Cash (OTC) processes, automation is becoming increasingly critical to streamline business operations. Manual processes involving multiple steps can take businesses days or even weeks to complete, exposing businesses to counterparty risk and lost revenue. businesses that rely on manual cash application processes are likely leaving themselves open to financial risk associated with incorrectly applied payments, insufficient company insight into incoming payments, and fraud.

Traditionally, companies have used manual cash application process to record incoming payments. This is tedious process that can take days, or weeks, to complete depending on the size of the payments. During this time, companies are at risk of errors and mistakes that can occur due to incorrect data entry or missed payments due to manual processes. In addition, these manual processes are inherently slow and vulnerable to fraud with unauthorized payments potentially going undetected. Manual cash application processes also give companies less visibility into cash availability and make it difficult to identify problem customers or maintain ongoing tracking of customer payments. Finally, the time consuming nature of manual OTC processes creates backlog of unpaid invoices, making it difficult for companies to accurately forecast cash flows.

In comparison, automated Order to Cash software offers companies tremendous benefits by eliminating manual tasks and streamlining OTC processes. Automated cash application processes drastically reduce the possibility for human error associated with manual tasks and give companies visibility into incoming payments. Automated OTC software integrates with existing systems and quickly applies payments to invoices -allowing businesses to get paid faster and reduce the risk of lost revenue. Automated Order to Cash software offers companies the ability to enjoy revenue quickly, provide insights into current and reconciled payments, and detect discrepancies or missing payments immediately. Additionally, automation provides significant fraud prevention capabilities by allowing companies to detect and reject any unauthorized payments and quickly identify and handle problem customers.

Overall, automated cash application processes provides range of advantages that far outweigh the risk associated with manual OTC processes. Reliable software solutions can not only boost operational efficiency and ensure accuracy, but provide insights into current payments and reduce the risk of lost revenue and fraud. For Finance Executives looking to improve the performance and accuracy of their Order to Cash process, software automation is the answer.