Our Client is a medium-sized business that specialises in manufacturing and selling industrial equipment. The company has been experiencing issues with its cash receipts posting process, which has resulted in delays in processing customer payments and reconciling bank statements.
Problem
The current process for posting cash receipts involves manually entering payment information into the company’s accounting software, which is time-consuming and prone to errors. Additionally, the manual nature of the process makes it difficult to track payments and reconcile bank statements in a timely manner.
Solution
To improve the cash receipts posting process, XYZ Company decided to implement an automated solution that would streamline the process and reduce the risk of errors. The company chose to integrate its accounting software with a payment gateway that would allow customers to make payments online, which would then be automatically posted to the accounting software.
The bulk of the cash application team’s resources are occupied with low-value manual chores including rekeying remittances, collecting and reconciling data, and matching invoices. They become less productive as a result, and applying for cash becomes cumbersome. Additionally, firms wind up spending a lot on FTE costs, processing fees for third-party suppliers, or key-in fees for bank lockboxes, which makes the process of applying for funds expensive.
Less reliance on staff and lockbox fees results from automated cash application systems. Cash application teams may guarantee more than 95% straight-through cash posting rates with automation and lower operating expenses.
What we achieved?
Conclusion
The implementation of an automated solution has greatly improved XYZ Company’s cash receipts posting process. The company has been able to streamline the process, reduce errors, and free up resources, which has resulted in a more efficient and effective process overall. The new system has also allowed the company to better track payments and reconcile bank statements, which has helped to improve the accuracy of its financial reporting.
To know more about our other case studies, click here.
