Automation technology can lessen the number of manual tasks by automatically matching cash receipts to invoices.
FREMONT, CA: Presently, intelligent automation tools are used in the finance sector to improve old processes. Machine learning takes over the work and saves human skills for other essential aspects of the process to enhance the cash application process.
Here are some ways that automation software can help improve the cash application process…
Lockbox Data
Automation will reduce manual work largely. Optical Character Recognition (OCR) technology can scan check and remittance images from banks to reduce manual tasks, lower costs, and process payments faster. The Cash Application Module can extract the data and application of remittance to invoices easily. If all types of remittance details are stored and managed on a single platform, then the team can have visibility and traceability while leaving the heavy lifting to sophisticated process automation tools.
Email Remittance
Some customers send payment remittance via email; robotic process automation (RPA) can download the data into a cash application solution automatically without human assistance. As soon as the file enters into remittance inbox, the information is downloaded quickly. After that process, RPAs can match the receipts to open invoices.
EDI
Electronic Data Interchange enables companies to exchange information electronically rather than with paper. Some customers prefer the EDI method to interact with suppliers because it eliminates the manual process in sending purchase orders and receiving remittance files.
There are some benefits of Cash Application Automation process like:
• Automating cash application software enables the cash application team to perform higher value-added functions.
• It is more efficient and time-saving. It improves efficiency by allowing the bookkeeper to spend less time manually matching remittances & payments with accounts receivable records. It can provide real-time data for the owner and shorten the collection cycle.
• This system will help you in onboarding new customers quickly and easily and will provide better customer service. Invoicing and collecting payment will also take considerably less time.
• Customers will get error-free and accurate information because automation decreases errors in recording and applying for payments. With the absence of paper remittance form, a customer has to worry less on sending in payments.
• Automation enables cash application personnel to focus on higher-value activities such as addressing disputes and deductions more speedily.
