Using Automated Real-Time Cash Allocation Software To Maximize Cash Flow
AUTOMATED REAL-TIME CASH ALLOCATION SOFTWARE
it is no secret that cash flow is major indicator of businesses financial health. As part of businesses order to cash cycle, capturing money and allocation should be as efficient as possible. One solution that can help in this regard is automated real-time cash allocation software. Below is comprehensive guide to utilizing software solution of this kind.
Analyze Your businesses NeedsThe first step to getting the most out of automated real-time cash allocation software is to assess your businesses specific needs. Analyzing existing policies related to order to cash management, as well as internal processes and objectives, can offer pointers on how an automated cash allocation solution could most effectively be used.
What Type of System is Right for Your Cash Allocation?After determining your businesses cash flow needs, you must decide on the type of system you will use for automated cash allocation. There are three main types of systems: cash application, dispute management, and payment optimization.
Cash Application Systems facilitate the allocation of payments from customers by automatically applying the credit from customer?s invoice to their accounts. By eliminating manual intervention, these systems can speed up cash collection and reduce the errors that can delay payments.
Dispute Management Systems assist with the resolution of customer disputes. Typically, disputes involve payments that have not been allocated or allocated to the wrong account. These systems enable businesses to easily resolve disputes, reducing time spent dealing with customer calls and inquiries.
Payment Optimization Systems enable businesses to better plan their cash flow by helping to prioritize customers? payments. The systems achieve this by analyzing customer payment trends and their credit history, enabling businesses to make more informed decisions on who to pay first.
Implementing the SystemOnce you’ve determined the type of system you will use, the implementation of the automated cash allocation software solution should be relatively straightforward. Generally, the vendor should support you through the installation and training processes. You should be prepared to provide staff with detailed instruction and ensure they have sufficient training to use the system correctly.
Maintain Regular ChecksOnce the system is operational, regular checks should be conducted to ensure data entry is accurate and customer satisfaction is maintained. If dispute arises, it is important that they are resolved in timely manner in order to maintain customer satisfaction.
Improving Cash FlowAutomated real-time cash allocation software should improve the speed and accuracy of your businesses cash flow management process. By cutting out the manual processes of payment entry and customer dispute resolution, businesses can save time and money. With the system and accompanying processes in place, your businesses cash flow and customer satisfaction should both be better than ever.
