The Risk Of Not Automating Cash APplication
AUTOMATING CASH APPLICATION
As executives, when looking for solutions to improve the order to cash process, it is of utmost importance to take into consideration the risks involved in not automating cash application. While manual data entry and sorting may at first appear to be the safest, yet least efficient approach, the fact is that over time it can become increasingly more costly and problematic.
Without automated cash application, organizations become incapable of taking advantage of data analytics that could lead to greater precision in accounts receivable operations. Furthermore, manual data entry puts your team at an increased risk of data entry errors that could significantly affect accounts receivable performance, increasing the possibility of accounting errors, leading to dissatisfactory customer service, and eventually, revenue losses.
For those who mistakenly believe that manual bookkeeping is an acceptable alternative to automated software, it is important to note that manual data entry includes several inefficiencies such as prolonged times to process payments, administrative costs and the aforementioned risk of entry errors. Despite what one may believe, manual bookkeeping is not way to reduce costs, since it requires more human resources and leads to mistakes that can drain resources when it comes to solving them.
Ultimately, automating the cash application process can become one of the drivers of successful order to cash process. By automating cash application, organizations can save time, reduce the number of entry errors, free up resources and gain access to valuable data that can help organizations drive meaningful decisions related to accounts receivable operations.
businesses operating on manual data entry are unable to focus efforts on higher-value activities. Automation of the cash application process allows organizations to devote their time and resources to more meaningful activities such as customer service, billing, reconciliation and collections, all of which can help increase customer satisfaction and revenue growth.
In the end, automation of the cash application process is not only beneficial but also key to the stability and superior performance of any accounts receivable operation. Automating cash application can help organizations experience significant increases in accuracy, revenue growth, customer satisfaction, as well as profitability.
