Today, the A/R professionals not only have to deal with multiple payment methods, but they also have to sort through remittance advice that comes separately. Moreover, these remittances come in a variety of formats such as email attachments, check stubs, scanned images, etc. This inconsistency of payment types and remittance advice formats pose an enormous challenge to extract and aggregate data.
With this prominent shift companies have started to set-up online web-portals as a cheaper way to distribute remittances to vendors making the job of AR collectors tedious. On top of all this, cash application is a time-invariant process; its speed and efficiency directly affect the business’s performance. Thus, expressing a need for an automated process that will save plenty of crucial work-time and enable a faster cash posting process.
The manual cash application is an even more troublesome, time-consuming, and labor-intensive part of the order-to-cash cycle, and in some ways, the most important part of the process.
Due to inaccuracy in cash application, the domino effect might take its toll on Credit Management as well. It might lead to inaccurate customer credit limit data. And therefore, it might have a direct impact on customer satisfaction.
Domino effect seen due to inaccuracy takes its toll on other aspects of the integrated receivables. This leads to dunning for the inaccurate amount.
The scenario with deductions is not different from other processes. Inaccuracy in any one of the processes might lead to longer resolution time in deductions management.
The firm processes more than 27,000 payments every month, and 82% of the processed payments are made through checks thus they were looking for 100% manual cash application work for these manual & electronic payments. To put themselves out of this dreadful situation, they shifted towards an intelligent, easy-to-deploy solution that automates painlessly. They adapted the Automated AR Platform which allowed them to master these challenges in their cash application process.
The pain of slow-witted & error-prone cash application does not need to be felt any longer with AR automation platforms on the market. With an efficient cash application process, EmployBridge achieved progressive results:
Anatomy of a Self-Service Payment Portal
Improving Overall A/R Efficiency with Digital Transformation of Credit, Collections and Cash Posting
Remittance Capture & Data Aggregation: 4 Strategies To Ace Your Game