Cash application is the process of reconciling incoming payments to open accounts. It involves cross-evaluating the remittance data with all open invoices and closing all invoices for which payments have been received.
Manual cash application methods are tedious and error-prone. Use our calculator to check your costs and savings with different types of cash application methods. Get insights on how you can improve the process with various best practices and software tools.
What is Cash Application Software?
Cash application is a vital part of the accounts receivable process. It involves matching all the incoming payments to the corresponding open accounts and remittances. With cash application software, all the process features—data aggregation, application rates, cash reconciliation, turnaround time, unapplied cash, and team performance—become easy to measure and monitor.
Cash Application ROI Calculator
Automating accounts receivables can help you achieve your dream ROI with savings in time, lower costs, increased cash flow and reduced bad debts. It also helps eliminate manual clerical tasks and reduce days sales outstanding(DSO). You also get improved visibility of and control over the processes.
- Automated remittance data capture: Deploy a multi-engine automatic remittance capturing software for hassle-free aggregation of remittance data hosted across emails and websites
- Auto-identification in case of no remittance: Predict invoices as potential remittances and automatically link them to payments based on pre-configured threshold values.
- Automated invoice matching: Auto-match payments to the invoices even in the most complex scenarios such as parent-child relationships.
- Automated deductions identification: Map customer reason codes with internal ERP-specific codes.
The Cash Application ROI Calculator delivers the numbers you need, to develop your business case for accounts receivables automation, including the efficiency gains from roi remittance processing. The Excel-based calculator gives you your automated cash application savings and highlights the level of analyst satisfaction and automation achieved.
All you have to do is download the calculator and enter basic metrics such as your team size, number of invoices processed, remittance calculation methods, etc. The algorithm then calculates the dollars you’re saving with your current cash application process. It also gives you an idea of how to improve your savings with the help of a few process changes and automation features.
With the calculator, you can also determine the minimum and maximum cash application savings that you can generate with different methods and processes.
