Remittance aggregation and processing can be really tedious and time-consuming. But what makes it so complex? Well, the root cause of cash application-related bottlenecks is due to various unstructured remittance scenarios.
Due to the lack of standardization, remittance data comes from a variety of sources, in various formats and templates. AR analysts have to handle the resultant confusion in remittance scenario with a series of steps.
Let us look at how the various steps involved in the cash application process:
Digital payments often do not have any remittance data. When remittances are sent separately, manual intervention is required to match the incoming payments to open invoices. Cash application analysts need to manually access and download remittance data from emails and web portals. This error-prone and time-consuming process can increase the overall time-to-cash.
The downstream consequences of this slow and error-prone cash application process are:
In recent years, AR automation solutions have transformed the cash application process for better business implications. Let’s see how AI-led automation solutions such as RadiusOne AR can help you achieve 95% straight-through cash application with automated remittance aggregation.
With the increasing volume of payments, it’s crucial to ensure that your company credit is not tied up because the cash was not applied to the system. Automating the cash application process helps mid-sized firms accelerate cash flow while enabling optimized resource utilization. Take a few minutes to help us understand the problems you face with AR:
Understand how a fully automated cash reconciliation ecosystem can improve your cash flow; check out this blog on “How Automating Cash Reconciliation Can Impact Your Bottom Line”
HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.