Automation: A Catalyst In The Cash Application Process

What you’ll learn


  • Learn how America’s largest collision repair company automated payment reconciliation
  • Uncover the secret of achieving 95% straight-through cash posting at an invoice level
  • Discover how operation standardization can help your team save up to 12 man-hours per day in payments processing
  • Understand the benefits of automatic remittance data capture and minimization of manual work for handling exceptions

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    Introduction

    Over the decades, Cash Application has been a nightmare for almost every analyst. The Cash Application analysts have to work really hard to collect and compile all the remittances that are attached to the email or are uploaded on web portals. Sometimes, companies have multiple retailers who send remittances via multiple sources. As a result, AR matching becomes a problem and requires a lot of your :

  • Time
  • Money
  • Resources
  • Imagine getting all the remittance information at hand as soon as the payment arrives without having to go through the pain of remittance aggregation from customer portals and emails for each and every customer. Amazing right?

    Let’s walk you through the journey of America’s leading collision repair company, Caliber Collision which faced some similar bottlenecks and won against them consistently, and achieving a 95% invoice hit rate and a 95% straight-through processing.

    This blog hopes to answer some important questions that Cash Application analysts have been looking for :

  • How to deal with a huge number of ACH payments per day?
  • How to ensure accuracy and reduce the possibility of errors?
  • How to secure time, money and productivity altogether?
  • THE STORY OF CALIBER COLLISION

    Caliber Collision was plagued with similar issues. The company had more than 1 million payments that were made annually. The company used 10 different processes for ACH payment reconciliation. The payments got accumulated from different insurance companies and they had to be operated manually.

    The company had 5 coordinators and 3 analysts who were appointed the work of gathering remittances from insurance portals and emails, and update the data into spreadsheets using formulas to map open AR.

    WHY IS CASH APPLICATION A NIGHTMARE?

    Cash Application has been a huge hassle since companies became EFT (Electronic Fund Transfer) heavy. The collection of remittances has been really difficult, as they never came in with the right invoices. The remittances were sent either through emails or uploaded on the web portals. Ergo there were few major challenges faced by analysts :

  • Manual reconciliation of payments with bank statements from bank portals which required a lot of attention from cash analysts that could have been used for higher-value tasks such as credit and collections.
  • Manual logging of web portals more than 500 times a day to recover the remittances and manually upload the data into the database for AR matching.
  • Loss of time and productivity as data was aggregated, uploaded and consolidated manually into spreadsheets.
  • Visible human errors as the whole process was very cumbersome and redundant.
  • Automation Dashboard

    HOW AUTOMATION LED TO A GOODNIGHT’S SLEEP

    “Old ways won’t open new doors”

    The introduction of automation into Cash Application was a milestone. The work of analysts and coordinators in Cash Application became much lighter. They were appointed to some high-value tasks for a change. So some of the major turning points were :

  • Automatic retrieval of bank files from the server which lowered the manual effort to a huge extent.
  • Auto-download of remittances from the portals using bots which saved a lot of time and productivity of the cash analysts.
  • Automatically capture information using an AI-based data aggregation engine which reduced the chances of human error and saved up to 12 man-hours per day.
  • Automatically link payment to remittance using an AI-enabled AR-matching engine which made the process swift, simple and ten times less cumbersome.
  • Automation A/R dashboard

    “HighRadius has really been a game-changer that helped us eliminate manual and non-value added tasks.”
    -Julie Weaver | Senior Director of Treasury

    At HighRadius we believe, customers and employees together make a happy kingdom. Thus today, employees at Caliber Collision have a stable work-life balance and the company has been a constant guest of :

    Results after Automation

    Fixing Cash Application to Achieve

    Elevate your process
    to the next level
    with Automation

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    HighRadius Cash Application Software enables the end-to-end automation of the cash application process that covers major benefits such as AI-enabled data capture for remittances, auto-linking of payments with open invoices, cost-cutting on lockbox fees and easy compatibility with any system due to its ERP-agnostic Saas infrastructure. Apart from the major benefits that it has, there are some key features which can not be missed out, some of them are Email Remittance capture, Discounts and Deductions Handling, Check Remittance Capture, Web Remittance Capture, Invoice Matching, and RDC & Mobile Payments.