9 Best Cash Application Automation Tools in 2025

Introduction

Efficiently managing incoming payments and reconciling them with invoices is one of the biggest challenges for accounts receivable teams, especially when payments arrive with no remittance information. Complex scenarios, like invoices tied to a single purchase order, partial payments, multiple remittances, or missing remittance details, often cause delays and errors. AI-powered cash application tools tackle these issues by using advanced algorithms to match payments accurately and quickly. In fact, studies show that AI-driven workflows in payment invoice matching and remittance matching can reduce cycle times by up to 80%, while improving audit trails, compliance, and scalability, capabilities that traditional tools often lack.

With the right cash application tool, businesses can leverage AI and advanced algorithms to automate payment matching, reduce manual effort, and accelerate cash flow. In this blog, let’s explore the top cash application automation solutions to help you find the right one that can efficiently solve these challenges and scale your AR operations.

What is Cash Application Automation?

Cash application automation uses technology to match incoming payments with invoices in an ERP or accounting system. It eliminates manual data entry by extracting payment data from bank statements, lockbox files, and remittance advice. It then applies intelligent algorithms to link payments with outstanding invoices.

Automated cash application tools also handle complexities like partial payments, deductions, short-pays, and missing remittances by using configurable business rules and AI models. This ensures that payments are posted faster, with higher accuracy, and minimal manual touchpoints. The result is a more streamlined accounts receivable process that frees up finance teams to focus on strategic tasks rather than clerical reconciliation.

Cash Application Automation Solutions at a Glance

Automating cash application speeds up payment matching, minimizes unapplied cash, and gives real-time visibility into receivables.  Modern cash application tools leverage AI, machine learning, and seamless ERP integrations to simplify complex workflows. Below is a snapshot of the top platforms in 2025 helping organizations achieve these benefits efficiently.  

Platform	Best Suited For
HighRadius	Large enterprises with complex, multi-entity Order-to-Cash (O2C) processes seeking AI-driven payment matching and ERP-agnostic integration.
Esker	Enterprises seeking reliable, scalable accounts receivable automation.
Billtrust	Companies seeking simple document management and streamlined payment handling
Gaviti	Firms seeking rapid deployment with collector task tracking.
Quadient	Organizations digitizing check-heavy or multi-format remittance processes.
Versapay	Companies needing a customer-visible invoice-to-cash workflow.
Kolleno	SMBs and fast-growing firms seeking easy receivable automation.
Serrala	Enterprises with heavy cross-border payments and internal treasury requirements.
Emagia	Multinationals needing modular AR and multi-currency handling in one suite.

Benefits of Cash Application Software 

Manual processes can delay cash application, create misapplied payments, and limit visibility into customer accounts. Here’s how automating cash application software helps businesses improve efficiency.

Faster Payment Reconciliation: The system automatically matches payments from sources like bank statements, lockbox files, and remittance advice. This eliminates hours of manual processing, reduces backlogs, and allows finance teams to close their books faster.

Improved Accuracy: By automating data capture and matching, the software minimizes the risk of human errors. Payments are applied correctly the first time, reducing disputes and ensuring financial records remain accurate.

Enhanced Visibility: Cash application tools offer real-time dashboards and reporting on open invoices, unapplied payments, and customer account status. This visibility helps finance teams spot issues quickly and make informed decisions to resolve them.

Reduced DSO: Faster payment posting directly impacts Days Sales Outstanding (DSO) by speeding up collections and improving liquidity. A lower DSO strengthens working capital and provides more cash for business operations.

Cost savings: Automated solutions handle check processing without manual bank key-ins, effectively eliminating associated fees entirely. This not only reduces operational costs but also minimizes errors linked to manual entry.

Must have Features for Cash Application Tools

A modern cash application tool does more than just match payments to invoices. It streamlines reconciliation, reduces errors, and accelerates cash flow. Here are the key features that make these tools indispensable for finance teams: 

1. AI-Powered Remittance Capture
   Automatically extract remittance details from diverse sources like emails, PDFs, customer portals, and check images. This eliminates manual keying and ensures faster, more accurate data entry.
   
2. Automated Invoice Matching
   Match payments against open invoices using configurable business rules, tolerance levels, and AI algorithms. This reduces unapplied cash and frees up teams from repetitive reconciliation work.
   
3. Exception Handling Workflows
   Identify and route short pays, overpays, deductions, and unidentified payments to the right stakeholders. Automated workflows speed up resolution and prevent bottlenecks in cash posting.
   
4. ERP Integration
   Enable seamless bi-directional sync with leading ERPs (SAP, Oracle, NetSuite, Dynamics, etc.). Real-time updates ensure invoices, payments, and customer data stay accurate across systems.
   
5. Bank & Payment Gateway Connectivity
   Connect directly with global banks, lockboxes, and payment processors for timely access to daily cash feeds. This integration accelerates posting and improves cash visibility.
   
6. Deduction & Dispute Linking
   Classify and link deductions during posting to speed up dispute resolution. This minimizes revenue leakage and enhances collaboration between collections and deductions teams.
   
7. Dashboards & Reporting
   Provide real-time visibility into metrics like unapplied cash, match rates, exception volumes, and team productivity. Actionable insights help managers track performance and optimize processes.
   

9 Best Cash Application Automation Solutions

Selecting the right cash application software is critical for organizations looking to streamline their order-to-cash process, reduce manual work, and improve cash flow visibility. Here are 11 leading cash application tools.

1. HighRadius

HighRadius is a leading solution providing enterprise-grade AI and robotic process automation in cash applications. It excels in automating complex payment exception handling and deduction coding. The platform offers seamless integrations with ERPs, banks and financial systems, enabling real-time data flow across order-to-cash processes.

Features

• Achieves 90%+ straight-through cash posting by leveraging multiple AI agents to automate invoice-to-payment matching.
• Supports full, partial, and multi-reference payment matching, reducing manual reconciliation effort significantly.
• Extracts and processes remittance data from diverse sources such as emails, PDFs, Excel files, and unstructured customer communications.
• Processes bank statements in formats like MT940, CAMT, BAI2, including “note to payee” information automatically.
• Identifies and codes short pays, overpayments, discounts, and tolerance differences automatically.
• Integrates with ERPs via API or file formats (JSON, CSV, EDI) and connects to 50+ ERPs and 110+ banks, 40 credit agencies, and 15+ billing systems globally.
• Provides real-time dashboards and reports showing unapplied cash, match accuracy, DSO, and overall AR performance for better decision-making.

2.Esker

Esker’s cloud-based cash application software automates the cash allocation process using advanced AI technologies like deep learning and NLP. It centralizes incoming payment info to accelerate processing and reduce errors while allowing collaborative exception handling. The solution supports global payment formats and multi-language processing.

Features

• Employs technologies like OCR for accurate invoice and remittance data extraction from diverse documents such as emails, checks, and portals.
• Facilitates collaborative exception and dispute resolution within AR teams, improving resolution times and cash recovery rates.
• Cloud-based architecture promotes ease of deployment and scalability.
• Intelligent document capture automatically converts payment information to electronic data within workflows.
• Real-time KPI and SLA dashboards highlight performance health and payment bottlenecks.

3. Billtrust

Billtrust is an accounts receivable automation platform that provides an integrated suite for invoicing, payment processing, cash application, and collections. Billtrust is used widely by mid-size and large enterprises belonging to different industries. Its AI-driven cash application module automates payment reconciliation, increases match accuracy, and streamlines complex workflows.
Features:

• High accuracy in AI-driven cash matching, reducing unapplied cash significantly.
• Supports omnichannel payment acceptance and customer portals to improve customer engagement and collections.
• Extensive integrations with ERPs and banking systems flexibly support mid-to-large enterprises.
• Customer portals with self-service payment and communication options.
• Integrated credit management and collections workflows.
• Dynamic dashboards and reporting for AR performance insight.
  

4. Gaviti

Gaviti is a streamlined cash application and collections platform focusing on fast deployment and accuracy. Its payer self-service portal enables accurate invoice matching when customers attribute payments. Multi-bank and ERP compatibility, including legacy systems, allow broad usage. It emphasizes collections workflow optimization alongside cash application.

Features:

• Rapid deployment with plug-and-play style ERP and bank integrations, including legacy system support to widen accessibility.
• Supports various payment methods such as ACH, bank transfers, credit cards, and lockbox processing.
• Focused collections management tools alongside cash application for comprehensive AR lifecycle management.
• Automated remittance handling with bank and lockbox connectivity for faster cash reconciliation.
• Real-time AR performance dashboards with customizable reporting.
  

5. Quadient A/R (YayPay)

Quadient A/R (formerly YayPay) combines invoice-to-cash automation with AI-driven payment matching and customer communication. Suitable for all business sizes, it emphasizes predictive collections, invoice crediting, and integrated credit management.

Features

• Combines AI-driven payment matching with customer communications in one platform for enhanced AR efficiency.
• Predictive analytics helps prioritize collections and forecast cash flow.
• Offers flexible integrations with ERP, CRM, and accounting software suitable for companies of all sizes.
• Robust automation of credit management and invoice crediting improves cash flow predictability.
• AI-powered payment matching with predictive collections prioritization.
• Customer portals for payment tracking and self-service communications.

6. Versapay

Versapay is a cloud-native cash application and AR collaboration tool focused on secure payments and enhancing customer experience with interactive portals. It integrates with most ERPs and automates workflows through real-time communications and dispute management.

• Features
  
  • Connects AR teams and customers via secure online payment portals with real-time messaging and payment status updates.
  • Cloud-native SaaS platform offering fast integration with leading ERPs.
  • Enables real-time dispute and exception management, enhancing customer relationships.
  •  Secure cloud portals for invoice viewing, payments, and account management.
  • Seamless ERP syncs with Oracle NetSuite, Microsoft Dynamics 365 Business Central, and Sage Intacct 
  • Flags and routes short pays, overpayments, deductions, and unmatched payments automatically.

7. Kolleno

Kolleno is a cash application platform designed for fast growing SMBs seeking high automation and accuracy in their accounts receivable processes. Its AI-powered matching capabilities, combined with extensive ERP integrations, make it a robust choice for complex organizations managing multiple entities and currencies.

Features

• Supports complex organizational structures with multi-currency and multi-entity processing.
• Seamless, real-time integration with leading ERP systems such as SAP, Oracle, and NetSuite ensures data consistency and process alignment.
• AI and ML algorithms automate remittance processing and deduction coding workflows.
• Centralized dashboards offer end-to-end visibility of cash positions, unmatched invoices, and workflow bottlenecks in real time.
• Built-in escalation and approval workflows reduce delays and manual interventions in cash posting.

8. Serrala

Serrala provides financial automation solutions for cash application, treasury, and payment processes. Its platform helps enterprises improve efficiency, reduce manual effort, and maintain accurate financial records. Serrala supports ERP integrations and offers tools for standard automation workflows across mid-to-large organizations.

Features:

• Achieves payment matching rates using advanced AI and automation.
• Deep integrations with SAP and cloud ecosystems, enabling automated workflows in existing corporate landscapes.
• Supports a comprehensive range of global payment formats and bank statement types.
• Cloud-native cash application automation optimized for SAP environments.
• Automated payment reconciliation across complex payment formats.
• Intelligent reminders and dispute handling functionalities.
  

9. Emagia

Emagia offers an AI-driven cash application solution tailored for enterprise scale with complex global operations. It integrates with banks, ERPs, AP portals, and email inboxes to automate payments, remittances, deductions, and dispute handling while providing rich analytic insights. Its AI copilot, Gia, enhances automation and customer engagement.

Features:

• Extensive connectivity with banks, ERP systems, AP portals, and multiple remittance channels to automate high-volume enterprise workflows.
• Advanced AI and machine learning enhance auto-matching, deduction handling, and dispute resolutions to reduce exceptions.
• Cognitive AI-powered cash application automating remittance capture from emails, check images, and portals.
• AI-driven dispute and deduction auto-resolution workflows.
• Multi-ERP platform integration and global banking connections.
• Real-time reporting and dashboards with cash forecasting capabilities.
  

How to Choose the Best Cash Application Solution

Selecting the right cash application software goes beyond comparing features, it’s about aligning the solution with your business’s complexity, industry, and growth plans. Here’s a breakdown of key considerations:

1. Automation Capabilities

Check how much the system automates manual tasks such as invoice matching, remittance capture, deductions, and unapplied cash resolution. A strong solution should offer AI/ML-based matching to reduce lockbox fees and manual intervention.

2. Integration Flexibility

The tool should integrate seamlessly with your ERP, CRM, and banking systems. Evaluate whether it supports multiple ERPs, especially if you operate globally or through acquisitions.

3. Remittance Handling

Different vendors excel at different remittance formats (EDI, email, PDFs, bank files, portals). Assess whether the software can capture and standardize all these data sources automatically.

4. Scalability

As your transaction volume grows, your software should handle larger data loads without performance lags. Consider whether the vendor’s architecture and AI models can scale with your business.

5. Industry-Specific Strengths

Some solutions are designed with specific industries in mind, manufacturing, distribution, retail, or services. Evaluate case studies or references in your industry to see proven outcomes.

6. Analytics & Reporting

A good solution should not only process payments but also give visibility into cash application analytics, KPIs like unapplied cash levels, processing time, and exceptions handled. Look for customizable dashboards and reporting.

7. Total Cost of Ownership

Pricing models vary; some charge per transaction, while others follow subscription models. Calculate both direct (license, setup) and indirect costs (IT dependency, manual effort saved) to estimate ROI.

Why Top Enterprises Choose HighRadius for Cash Application

HighRadius Cash Application Management is widely recognized as the market-leading solution for automating complex cash application workflows. The platform  enables enterprises to streamline AR operations, accelerate cash posting, and reduce manual effort at scale. Our  modular approach combines AI, NLP, and pre-built automation to deliver measurable business impact across every stage of the cash application process.

AI Remittance Aggregation

• Feature: Leverages AI and NLP to extract remittance data from emails, attachments, and check images.
  
• Advantage: Eliminates manual data entry and ensures high accuracy.
  
• Benefit : Supports 90%+ straight-through cash posting, speeds ERP posting, reduces errors, and frees analysts for higher-value tasks, enabling faster cash flow realization.
  

Remittance Portal Automation

• Feature: Pre-built integrations with 500+ customer and AP portals via RPA or APIs.
  
• Advantage: Removes repetitive portal logins and manual downloads.
  
• Benefit : Saves analysts hours of manual work weekly, ensures up-to-date remittance information, and reduces errors in cash application.
  

Remittance Auto-Matching

• Feature: Advanced AI algorithms automatically match payments to invoices, even when received separately.
  
• Advantage: Eliminates manual reconciliation of decoupled payments.
  
• Benefit : Reduces unapplied payments and accelerates reconciliation cycles with a 90%+ item automation rate, giving finance leaders clear cash visibility.
  

Exception Management

• Feature: Suggests remittance matches and automates outreach for missing data.
  
• Advantage: Minimizes manual back-and-forth handling of exceptions.
  
• Benefit : Analysts resolve exceptions faster, freeing time for strategic tasks and driving 40%+ faster exception handling.

Deduction Auto-Coding

• Feature: Uses a pre-built library from 600+ implementations to automatically classify deductions.
  
• Advantage: Automatically posts low-dollar disputes and short-pays to correct GL accounts.
  
• Benefit : Reduces deduction backlog, speeds financial closes, and improves AR efficiency, contributing to 30%+ increase in analyst productivity.

Nevertheless,  implementing an AI-powered cash application software can significantly reduce manual effort, improve payment accuracy, accelerate cash posting, and provide real-time visibility into receivables. By selecting the right solution aligned with your organization’s size, industry, and complexity, finance teams can streamline AR operations, optimize working capital, and focus on strategic initiatives that drive growth.

FAQs : AI-Powered Cash Application Tool

1. What is an AI-poweredAI powered cash application?
An AI-powered cash application uses artificial intelligence to automatically match incoming payments against outstanding invoices by learning from historical matching data.  AI-powered solutions might process the matching automatically, flag uncertain items for review, and instantly reflect payment status across AR records. 

2. What is an example of a cash application?
An example of cash application   involves a company receiving a customer’s bank transfer with a remittance advice listing several invoice numbers. The cash application automation, matches the payment to those invoices and posts the transactions in the ERP, updating the AR ledger. This streamlines accounting and ensures businesses have real-time visibility into their cash position.

3. Which features should I look for in a cash application tool?
Key features include AI-based remittance capture, automated invoice matching, exception handling workflows, ERP integration, bank connectivity, deduction and dispute linking, and real-time dashboards for visibility. Advanced solutions further allow configurable business rules so finance teams can adapt automation to unique customer and industry scenarios.

4. What types of payments can cash application software handle?
Modern tools handle a variety of payment types, including bank transfers, checks, credit cards, lockbox files, digital wallet payments, ACH transactions and partial or multi-reference payments. Additionally, they can consolidate remittances from multiple sources, emails, portals, or EDI into a single workflow for efficiency.

5. How do cash application tools reduce DSO?
By accelerating payment reconciliation and reducing manual errors, cash application tools ensure faster posting of payments. Automation removes bottlenecks from missing remittances or exceptions and speeds up dispute resolution, enabling more predictable cash collection, thereby reducing Days Sales Outstanding (DSO).

6. How do cash application tools integrate with ERP systems?
Most cash application tools integrate with ERP systems through APIs, SFTP connections, or pre-built connectors that enable secure data exchange. These connections enable real-time syncing of invoices, payments, and customer data. Matched payments are automatically updated in the ERP.