Automated cash application is another example of how AR technology can benefit Tech companies. Cash application software, using Artificial Intelligence (“AI”) technology to help link payments with invoices, is being used with great success to process remittances even faster.
Piles of unmatched and unapplied customer remittances disappear when cash application software with 90+ percent match rate potential is used. Unapplied payments become exceptions rather than the rule. The vast majority of payments are processed automatically without human intervention. Match rates can be maximized by working with customers to identify the reasons for unmatched remittances.
Here are some examples of how automated cash application can be used to benefit your company.
If you are using a manual cash application system with lock box deposits keyed in by your bank, you probably have a large on-going backlog of unmatched and unapplied payments. A backlog can result in customer account balances not being up to date. The ripple effects of this situation can be considerable with orders not released, credit decisions delayed, and unnecessary collection calls made.
Using cash application software can greatly reduce your backlog of unmatched and unapplied payments and speed up the application to customer account balances. Accounts receivable will be up to date for timely credit decisions. Time will not be wasted throughout your company trying to get orders shipped, and customers will not be bothered about payments they already made.
When you use cash application software your backlog of unmatched and unapplied payments will drop dramatically. With the AI technology in cash application software, unapplied payments will become the exception instead of the norm. Some of the people you previously used to resolve unapplied payments will be freed up to help with more important jobs. They can help with invoice disputes, collection calls and credit analysis.
Using cash application software can eliminate tedious clerical tasks and allow you to shift resources to much more important activities.
In addition to significantly speeding up the processing of customer payments and providing the opportunity to streamline operations, installing or subscribing to cash application software can help to reduce costs in several ways.
If you are using a manual cash application system you are probably paying your bank for lock box key-in fees. Using cash application software can reduce these fees.
Using cash application software will free up some people who will no longer be needed to manually process unmatched payments. You could consider reducing headcount to reduce costs, but you will probably find that redeploying them to other more important activities will in the long run probably be a greater benefit to your company.
Cloud-based cash application software presents the opportunity to hire remote workers. This may result in cost savings and provide staffing flexibility.
Accounts receivable and cash application software used widely by Tech companies is available from Lockstep Collect, a leader in cloud-based and premise-based software solutions made specifically for businesses selling on credit.