How Cash Application Process Simplifies Banking Invoicing Processes

By CIOReview | Friday, November 1, 2019

Automation technology can lessen the number of manual tasks by automatically matching cash receipts to invoices.

FREMONT, CA: Presently, intelligent automation tools are employed in the finance sector to boost old processes. The advanced application of machine learning in the banking processes has enabled the staff to reduce the workload. One such process is the reinforcement of the cash application process, where the software solution takes over the part of verifications.

Here are some ways in which automation software will facilitate improve the cash application process…

Lockbox data

Automation can scale back manual work for the most part. Optical Character Recognition (OCR) technology will scan check and remittance pictures from banks to reduce manual tasks, lower prices, and process payments quicker. The cash Application Module will extract the data and application of remittance to invoices simply. If all kinds of remittance details are stored and managed on one platform, then the team will have visibility and traceability whereas leaving the work to sophisticated process automation tools.

Email remittance

Some customers send payment remittance via email; robotic process automation (RPA) will download the data into a cash application solution automatically without human effort. As shortly as the file enters into payment inbox, the data is downloaded quickly. At that time after that, RPAs will match the receipts to open invoices.

EDI

Electronic Data Interchange (EDI) allows firms to exchange data electronically rather than with paper. Some customers prefer the EDI methodology to interact with suppliers for it eliminates the manual process in sending purchase orders and receiving remittance files.

There are some advantages of cash Application Automation process like:

• Automating cash application solution allows the cash application team to perform higher value-added functions.

• It’s more efficient and time-saving. It improves potency by permitting the bookkeeper to pay less time manually matching remittances & payments with accounts receivable records. It will provide real-time data for the owner and shorten the collection cycle.

• This method can assist you in onboarding new clients quickly and easily and can and will provide customer service. Invoicing and collecting payment also will take significantly less time.

• Customers can 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 got to worry less on sending in payments.

• Automation allows cash application personnel to focus on higher-value activities like addressing disputes and deductions more rapidly.

Check out: Top Banking Technology Solution Companies