#unapplied payments

[littlebellesmama]

Unapplied Cash: Why It Matters and How to Handle It

Behind the numbers and spreadsheets of everyday business, unapplied cash is a quiet disruptor that often goes unnoticed until it starts creating real problems. It’s not as visible as unpaid invoices or as flashy as revenue milestones, but it’s an area that deserves attention. Understanding unapplied cash and taking steps to reduce or clear it is essential for maintaining financial clarity, good…

[solemnlyfloatingscorpion]

The Strategic Advantage of Accounts Receivable Outsourcing for Business Growth

In today’s fast-paced business environment, maintaining a healthy cash flow is essential for operational stability and strategic growth. However, managing accounts receivable (AR) in-house can be complex, time-consuming, and resource-intensive. Increasingly, organizations are turning to accounts receivable outsourcing as a strategic solution to optimize cash collections, reduce days sales outstanding (DSO), and enhance customer relationships.

At Right Path Global Solutions, we provide comprehensive accounts receivable outsourcing services designed to improve financial health while allowing businesses to focus on their core competencies. This article explores the benefits of outsourcing AR functions, key services offered, and why integrating AR outsourcing with other finance functions unlocks greater value.

What Is Accounts Receivable Outsourcing?

Accounts receivable outsourcing involves delegating the management of customer invoicing, collections, dispute resolution, and cash application to a specialized third-party provider. Rather than dedicating internal resources to routine AR tasks, companies partner with experts who use advanced technologies, proven methodologies, and professional communication to streamline the receivables process.

This outsourced approach helps businesses accelerate cash inflows, reduce credit risk, and maintain positive customer interactions—critical factors for sustainable growth and profitability.

Why Businesses Are Adopting Accounts Receivable Outsourcing

The decision to outsource accounts receivable is driven by several compelling advantages:

1. Accelerated Cash Flow

By leveraging automated invoicing, proactive payment reminders, and skilled follow-up teams, outsourced AR providers reduce payment delays and improve collection efficiency. This acceleration in cash flow provides working capital essential for daily operations and investments.

2. Reduction in Bad Debt

Outsourcing partners implement strict credit control policies and use data analytics to monitor receivables aging and customer payment behavior. Early identification of high-risk accounts enables timely intervention, minimizing the risk of defaults and bad debts.

3. Enhanced Customer Experience

Professional AR teams manage customer communications tactfully, handling disputes and payment negotiations without jeopardizing business relationships. This preserves goodwill and encourages repeat business.

4. Cost and Resource Efficiency

Outsourcing eliminates the need to invest in infrastructure, technology, and headcount for AR management. Businesses can redirect these resources to strategic priorities, improving overall operational efficiency.

5. Access to Advanced Technology

Leading outsourcing providers employ AI-powered collection tools, electronic invoicing, and real-time reporting dashboards. These technologies improve accuracy, speed, and transparency throughout the AR cycle.

Core Services Included in Accounts Receivable Outsourcing

A robust accounts receivable outsourcing service typically covers the following:

Invoice Generation and Distribution: Timely and accurate billing in compliance with contractual terms.

Payment Monitoring: Tracking payments, applying cash, and managing unapplied receipts.

Collections Management: Systematic follow-ups on overdue accounts using multiple channels.

Dispute Resolution: Handling customer queries and resolving discrepancies efficiently.

Credit Management: Assessing creditworthiness and setting credit limits to mitigate risks.

Reporting and Analytics: Providing real-time aging reports, cash flow forecasts, and performance metrics.

At Right Path Global Solutions, these services are customized to fit industry-specific needs, scale requirements, and organizational goals.

Integration with Other Finance and Accounting Functions

For maximum impact, accounts receivable outsourcing should be integrated with complementary finance functions such as:

Accounts Payable Outsourcing: Coordinated management of payables and receivables ensures holistic cash flow control.

General Ledger Services: Accurate posting of AR transactions facilitates timely financial closing and reporting.

Financial Planning and Analysis: Insights from AR data feed into forecasting and budgeting processes.

Procurement Outsourcing: Aligning vendor payments and receivables optimizes working capital and supplier relationships.

This integration forms a comprehensive finance and accounting outsourcing model that drives end-to-end operational efficiency and financial transparency.

The Role of BPO Accounting Process in AR Outsourcing

The bpo accounting process brings together diverse finance activities under a unified framework, enhancing consistency and compliance. In AR outsourcing, this means:

Seamless data flow between invoicing, collections, and accounting systems

Automated reconciliations that reduce errors and delays

Standardized procedures that ensure adherence to accounting standards and regulations

Such rigor ensures audit readiness, accurate financial statements, and trustworthy management reporting.

Why Choose Right Path Global Solutions for Your AR Outsourcing?

Selecting the right partner for accounts receivable outsourcing is critical for success. Here’s why many businesses rely on Right Path Global Solutions:

Experienced Professionals: Skilled AR teams with deep domain expertise.

Customizable Solutions: Flexible service models tailored to client requirements.

Technology-Driven: Use of cutting-edge automation and analytics tools.

Transparent Reporting: Real-time dashboards and regular performance reviews.

Customer-Centric Approach: Focus on maintaining positive customer relations while optimizing collections.

[kamalkafir-blog]

Cash & A/R Specialist

Job title: Cash & A/R Specialist Company: C1 Job description: such as freight and/or sales tax not paid Informs AR Specialist of unapplied over payments and short payments Prepares monthly AR… Theft Plans TeleHealth Options Wellness via Omada Health (healthy living solution) Travel Assistance Business Travel… Expected salary: Location: Hyderabad, Telangana Job date: Thu, 17 Apr 2025 23:57:02…

[kapittx]

Best Practices for Efficient Cash Application: Leveraging AI for Superior Results

Efficient cash application management is a critical process for any business, as it directly impacts financial health, operational productivity, and customer relationships. An effective cash application process, also known as payment processing, ensures accurate allocation of incoming payments, quick reconciliation, and minimal errors. However, traditional methods often lead to inefficiencies, disputes, and even severe cash flow problems. With advancements in technology, AI-powered cash application processes and cash application automation software have transformed how businesses manage payment reconciliation, enabling faster, more accurate outcomes.

What is the Cash Application Process?

The cash application process involves applying incoming payments to the corresponding invoices in the accounts receivable system. Payments can take various forms, including checks, electronic transfers, credit cards, or cash. The primary goals are:

To deposit received funds promptly into the company’s bank account.

To accurately match payments to the corresponding invoices or accounts.

This process is vital for maintaining accurate records, reducing receivables clutter, and ensuring seamless customer interactions. However, mismanagement can cause delays, disputes, and inefficiencies.

The Importance of an Efficient Cash Application Process

Cash application is a critical component of accounts receivable management, directly impacting a company’s cash flow, customer relationships, and overall financial health. An efficient cash application process not only minimizes unapplied payments and reduces errors but also streamlines operations, ensuring smooth financial workflows. Conversely, inefficiency in this process can lead to several significant issues.

Benefits of an Efficient Cash Application Process

1. Minimized Unapplied Payments: An efficient cash application process ensures that incoming payments are promptly and accurately matched with the corresponding invoices. This minimizes unapplied payments, where funds are received but not allocated to specific customer accounts, leading to a clearer financial picture.

2. Reduced Errors: Automation and systematic approaches in cash application significantly reduce the likelihood of errors. By minimizing human intervention, businesses can ensure that payments are applied correctly, reducing the risk of misallocations and financial discrepancies.

3. Streamlined Operations: With an efficient process in place, businesses can streamline their financial operations. This includes faster processing times, improved accuracy, and better coordination between departments, all of which contribute to smoother overall workflows.

4. Improved Cash Flow: Timely and accurate application of cash payments directly impacts a company’s cash flow. Efficient cash application ensures that funds are available for use more quickly, enhancing operational liquidity and financial stability.

5. Enhanced Customer Relationships: Accurate and timely cash application fosters trust and reliability in customer relationships. Customers appreciate prompt acknowledgment of their payments, which reflects positively on the business and strengthens customer loyalty.

Improved Accuracy

AI technologies significantly reduce human errors by automatically matching payments to the correct accounts based on remittance data. Traditional, manual processes are prone to mistakes due to human oversight, such as entering wrong amounts, misplacing payments, or failing to match payments to the right invoices. AI-powered systems, on the other hand, use machine learning and pattern recognition to ensure that every payment is accurately allocated. This precision helps in maintaining accurate financial records and avoids the costly mistakes that manual processes often incur.

Faster Processing Times

One of the most substantial benefits of AI-powered cash application is the ability to handle large volumes of payments swiftly. Automated systems process payments faster than human capabilities, significantly reducing the time it takes to reconcile accounts. This speed ensures minimal backlogs and enables the AR team to focus on more strategic tasks. For businesses handling thousands of transactions daily, the improvement in processing time can be a game-changer, leading to enhanced operational efficiency and productivity.

Enhanced Cash Flow Management

By speeding up the payment processing, AI-powered systems contribute to better cash flow management. Quick and accurate reconciliation means that businesses have a clearer and more immediate picture of their financial standing. This timely insight is crucial for maintaining liquidity, which allows companies to meet their short-term obligations, invest in growth opportunities, and reduce the need for short-term borrowing. Enhanced cash flow management also helps in better financial planning and forecasting, providing a solid foundation for strategic decision-making.

Customer Satisfaction

Accurate and timely postings are essential for maintaining good customer relationships. AI-powered cash application systems reduce the likelihood of misapplied payments and discrepancies, which are common sources of customer disputes. When customers see that their payments are processed correctly and their accounts reflect accurate information, it builds trust and confidence in the business. Satisfied customers are more likely to remain loyal and continue their business relationships, which is beneficial for long-term profitability and growth.

Best Practices for Cash Application Process and Payment Processing

1. Implement Auto-Cash Technology

AI Powered Cash Application software or Auto-cash systems like Kapittx  use advanced algorithms to automatically match payments to invoices. This technology offers several benefits:

Increased Accuracy: By reducing human error, auto-cash systems ensure that payments are accurately allocated to the correct invoices.

Reduced Manual Effort: Automation minimizes the need for manual data entry and reconciliation, allowing your AR team to focus on more strategic tasks.

Improved Auto-Cash Hit Rates: With higher matching percentages, auto-cash technology ensures that a larger proportion of payments are accurately applied without manual intervention.

To implement auto-cash technology effectively:

Choose a robust auto-cash system that integrates seamlessly with your existing AR software.

Regularly update and maintain your customer payment data to ensure the system has accurate information.

Train your AR team to understand the system’s functionalities and handle exceptions efficiently.

2. Follow Customer Instructions

Compliance with customer remittance advice is crucial for accurate payment application. Remittance advice provides detailed information about which invoices a payment is intended to cover, ensuring correct allocation.

To follow customer instructions effectively:

Automate Remittance Processing: Use software that can automatically capture and process remittance advice from various formats, such as email, paper, or electronic data interchange (EDI).

Double-Check Allocations: Implement checks and balances to verify that payments are applied according to customer instructions before finalizing transactions.

Communicate Clearly: Maintain open communication with customers to clarify any ambiguities in their remittance advice.

3. Handle Discrepancies Promptly

Prompt handling of payment discrepancies is essential to avoid backlogs and ensure smooth cash flow. Here’s how to manage discrepancies effectively:

Write Off Small Discrepancies: Establish thresholds for writing off minor discrepancies to streamline the reconciliation process. This allows your team to focus on resolving significant issues.

Prioritize Significant Issues: Develop a systematic approach for identifying and resolving larger discrepancies. This includes investigating the root cause and taking corrective actions.

Regular Audits: Conduct regular audits to identify recurring discrepancies and implement measures to prevent them in the future.

4. Leverage Imaging Tools

Digital imaging tools can expedite the resolution of payment discrepancies and improve accessibility. By digitizing payment and remittance documents, businesses can enhance their cash application process.

Speed Up Resolution: Digital images of payments and remittances allow for faster identification and resolution of discrepancies, as they can be quickly accessed and reviewed.

Improve Accessibility: Store digital images in a centralized system that can be accessed by authorized personnel, facilitating better collaboration and transparency.

Automate Data Extraction: Use optical character recognition (OCR) technology to automatically extract data from digital images, reducing manual data entry and errors.

5. Invest in Training and Specialization

Equipping your AR team with the necessary skills and knowledge is crucial for handling unapplied and unidentified cash effectively.

Regular Training: Provide ongoing training programs to keep your team updated on the latest tools, technologies, and best practices in cash application.

Specialized Roles: Assign specialized roles within your AR team to handle specific aspects of the cash application process, such as resolving discrepancies or managing customer communications.

Knowledge Sharing: Foster a culture of knowledge sharing and continuous improvement within your team to leverage collective expertise and experience.

6. Monitor Key Metrics

Tracking key metrics allows businesses to continuously improve their cash application process. Important metrics to monitor include:

Payment Volume: Keep track of the number and value of payments processed to understand workload and performance trends.

Unapplied Cash Value: Measure the value of payments that remain unapplied to identify inefficiencies and areas for improvement.

Auto-Cash Hit Rates: Monitor the percentage of payments automatically matched to invoices to assess the effectiveness of your auto-cash system.

Days Sales Outstanding (DSO): Track DSO to gauge how quickly your business is collecting payments and identify opportunities to accelerate cash flow.

To monitor these metrics effectively:

Implement Dashboards: Use real-time dashboards to visualize key metrics and track performance against predefined targets.

Regular Reviews: Conduct regular reviews of your cash application metrics to identify trends, challenges, and opportunities for improvement.

Benchmarking: Compare your performance with industry benchmarks to understand how your cash application process measures up and identify best practices.

The Role of Cash Application Automation Software

Modern cash application automation software enhances efficiency by incorporating AI and machine learning capabilities. These systems:

Automate repetitive tasks like matching payments to invoices.

Analyze patterns to improve accuracy and hit rates over time.

By integrating with ERP they significantly improve payment reconciliation productivity.

Case Studies examples : How Automation Transformed Cash Application

Case 1: Manufacturing Industry

An equipment manufacturer faced significant challenges with unapplied cash exceeding $2 million. By implementing AI-powered cash application processes, the company achieved:

Increased operational efficiency, saving thousands in labor costs.

Reduction of unapplied cash from $2 million to $400,000 in six months.

An auto-cash hit rate improvement from 65% to 90%.

Case 2: Medical Equipment Company

A medical devices firm struggled with misapplied payments leading to cash flow disruptions. After adopting cash application automation software:

Cash flow improved, enabling reinvestment in revenue growth.

Open credit memos reduced from 1,200 to 300 within a year.

Customer disputes dropped by 75%, enhancing satisfaction.

Benefits of AI Powered Cash Application Software or Payment Reconciliation Software

AI Powered Cash Application Software or Payment reconciliation software plays a crucial role in automating and streamlining cash application management. Key advantages include:

Reduced Errors: Automated matching eliminates human error.

Real-Time Insights: Provides a clear view of receivables for better decision-making.

Scalability: Supports businesses as they grow, handling higher payment volumes effortlessly.

Step-by-Step Guide to an Efficient Cash Application Process

Collect Payments: Deposit incoming funds promptly to optimize cash flow.

Match Payments: Use remittance advice and auto-cash tools for accurate allocation.

Reconcile Accounts: Regularly check for unapplied or misapplied payments and address them.

Resolve Discrepancies: Communicate with customers to clarify unclear remittance advice.

Analyze and Optimize: Continuously improve processes by tracking metrics and refining automation algorithms.

Learn More:

Conclusion

An efficient cash application process is essential for maintaining healthy cash flow, improving customer satisfaction, and optimizing operational efficiency. By leveraging AI-powered cash application processes, businesses can overcome common challenges, reduce errors, and achieve seamless payment reconciliation. Investing in modern cash application automation software and payment reconciliation software is no longer optional—it’s a necessity in today’s competitive landscape.

Start transforming your cash application management today with Kapittx by integrating advanced technology and best practices to unlock unparalleled efficiency and accuracy.

[meontechno]

Ensuring Financial Integrity | A Guide to Account Reconciliation for Businesses!

In the present context, determining the accuracy and consistency of financial data is imperative for a company. Account reconciliation is a general practice for businesses to create their balance sheet during the end of the financial year. The organizations require it to make informed decisions and help them to maintain financial integrity.

Why is account reconciliation vital for enterprises?

Account reconciliation is vital for enterprises for several reasons. Firstly, it ensures the accuracy of financial records by comparing internal documents with external statements, such as bank statements or vendor invoices. This helps detect discrepancies, errors, or fraudulent activities, fostering financial transparency and compliance with regulations.

Secondly, reconciliation identifies operational inefficiencies, enabling companies to optimize cash flow management and reduce the risk of overpayments or underpayments. It also enhances decision-making by providing real-time insights into financial health. Furthermore, reconciliation is crucial for audit trails, facilitating the auditing process and minimizing the likelihood of financial irregularities going unnoticed. Ultimately, it safeguards a company's reputation, financial stability, and legal compliance, making it an indispensable practice in modern business.

Account Reconciliation Process

It compares the balance of general ledger accounts for balance sheet accounts to supporting sets of records and bank statements.

Let's know the step-by-step process.

Gather all relevant financial records

The account reconciliation software plays a vital role in collecting all financial records, including invoices, bank statements, receipts, etc.

Determine discrepancies

It checks the discrepancies by comparing the financial records with the entries in the accounting system, such as missing, duplicated entries, incorrect amounts, or other errors.

Make Adjustments

After identifying and investigating the irregularities, it makes an essential adjustment to overcome errors and reconcile the accounts. This process may involve updating the accounting system, adjusting entries, or reconciling payments.

Document Changes

When adjustments are applied to financial records, it must ensure the documents' changes. It helps you determine the up-to-date financial records.

Verifying the accuracy of financial records

After making necessary modifications, ensure a thorough review of financial records to verify their precision and alignment with external documents, such as bank statements and vendor invoices.

Regularly Repeat the Process

Account reconciliation is a continuous procedure, underscoring the need for regular repetition to maintain the precision and reliability of your financial documentation. While the specific timetable for reconciliation may differ based on the scale and intricacy of your business, it is generally advisable to engage in account reconciliation at least once per month.

Some Examples of Account Reconciliation

Bank Reconciliation:

Bank reconciliation is the most common type of reconciliation. It involves comparing a company's cash account balance in its books with the balance shown on the bank statement.

Discrepancies can arise due to outstanding checks, deposits in transit, bank fees, or errors.

Accounts Receivable Reconciliation:

This reconciliation ensures that the accounts receivable (money owed by customers) on the company's books match the amounts reflected in customer accounts and invoices.

It helps identify discrepancies, such as unapplied payments, credit memos, or overdue accounts.

Accounts Payable Reconciliation:

Accounts payable reconciliation verifies that the company's records accurately reflect the outstanding bills and liabilities owed to suppliers.

It helps identify discrepancies, duplicate invoices, or unrecorded expenses.

Inventory Reconciliation:

Inventory reconciliation ensures that the physical inventory matches the inventory recorded in the books.

It is crucial for tracking losses, shrinkage, or discrepancies between actual and recorded inventory levels.

General Ledger Reconciliation:

General ledger reconciliation involves verifying that all accounts in the general ledger are accurate and complete.

It ensures that debit and credit entries are balanced and there are no errors in the financial statements.

Credit Card Reconciliation:

Companies reconcile credit card statements to ensure that all credit card transactions are accurately recorded.

Discrepancies may arise due to missing receipts, disputed charges, or errors in the credit card statement.

Intercompany Reconciliation:

This reconciliation is used in large organizations with multiple subsidiaries.

It ensures that transactions between different entities within the organization are properly recorded and eliminates any intercompany imbalances.

Payroll Reconciliation:

Payroll reconciliation ensures that employee wages, taxes, and benefits match the amounts recorded in the company's payroll system.

Discrepancies can occur due to overtime, withholdings, or errors in payroll processing.

Fixed Asset Reconciliation:

It verifies that the company's records accurately reflect the value and location of fixed assets, such as buildings, machinery, and equipment.

This reconciliation solution helps track depreciation and ensure compliance with accounting standards.

Tax Reconciliation:

Tax reconciliation involves reconciling the company's financial data with its tax returns to ensure that all tax liabilities and deductions are accurately reported.

Bottom Line

Overall, account reconciliation aims to maintain the accuracy and integrity of an organization's financial processes and detect any errors and fraudulent transactions in the system. Hopefully, this article will help you easier to understand this typical term in simple words.

Original Resource: https://medium.com/@meon_technologies/a-comprehensive-guide-to-account-reconciliation-software-for-businesses-24a1c130e47c

[printinvoiceswithapi]

Automate Statement Printing and Mailing

Whether you’re a financial institution, medical practice, or any other type of business, drafting, printing, and sending statements is a regular procedure. It’s essential to get these documents out in a timely manner so clients receive them and respond quickly. It’s also crucial to have a proper statement printing service that provides the right services for your company.

With Intrade, you can automate your statement printing and mailing processes so you’re not always caught up with executing transactional communications. By outsourcing this process to a statement printer, you can focus on your core business and reduce overall costs while improving the look and feel of these important documents.

You can choose the statement period and date for all of your accounts receivable, including consolidated statements for national account customers. You can also choose to display or not display the Balance Forward line item on the statement and whether or not you want to include unapplied payments on your statement. You can also choose to only print statements for customers who have no current activity, and you can decide whether or not you want to print a statement for each national account or only one statement per customer.

In addition, you can create multiple groups for the customer statement lists to simplify your data processing and mailing operations. You can use these groups to filter statements by customer group or by account status (current, past due, and overdue). The statement dates you select will apply to all the statements generated for the selected list.

SITES WE SUPPORT

Print Invoices with API – Wix

[nahasmaya]

Kareo help chat

There's ability to task in the desktop, but not in the browser. These are NOT integrated nor synched often enough and you have to bounce between the two to provide patients information about their billing. Kareo requires a browser interface mostly for scheduling/provider SOAP notes and a desktop interface for billing. This created all manner of problems for paying our providers and our ability to close-out year-end. Unapplied balances sit in a patient's account for months even though payment was received and processed. Patients complain that there is not transparency - and they're 100% correct! The statements don't track the patient payments along with the insurance payments. Kareo does not even have a basic way to create an invoice for patient copays that were collected. When you try to get answers to your questions, the support people try to assist, but the answer invariably is: here's the link to submit input for upcoming changes - changes that are NEVER implemented. Kareo has a vast support section, but you have to know EXACTLY what to type in to get results that are not buried in 30 other pages of key words. Users can get in direct touch with a coach to resolve any queries. Kareo assigns a success coach to every user for the first 90 days. It can also check the eligibility of patients for insurance in real time through its electronic connections with a large number of insurance companies. Kareo has the capability to store patient records enabling practitioners to quickly track health information, set alerts and manage billing. The product offers a built-in messenger which enables secure communication with patients, employees and billers. The user can also generate drill-down reports to retrieve the data of people who are not paying and take action against them. The analytics system allows users to generate performance reports of their practice and analyze the data with the help of various metrics and graphs. Kareo helps users with appointment scheduling, allowing them to customize their dashboard and create rules to track productivity. These products are mainly designed to cater to the needs of small practices by providing them the ease to connect with patients. Users can tackle administrative tasks such as electronic health records, medical billing and patient management. Kareo offers a complete cloud based platform for medical practise administrators.

[littlebellesmama]

Understanding Invoices, Billing, and Payment Terms: A Simple Guide to Getting Paid Right

If you’ve ever sold a product or service, you already know how important it is to get paid on time. But when money is involved, there’s more than just sending a bill and hoping it gets paid. Behind every successful business transaction, there’s a system that keeps things organized, clear, and traceable. This system lives in a world full of terms like invoices, credit memos, remittance advice,…

[kapittx]

What is Cash Application and How AI is Revolutionizing Cash Application Management?

What is Cash Application and How AI is Revolutionizing Cash Application Management?

Managing cash flow efficiently is the lifeblood of any business, especially for companies dealing with high volumes of transactions. Cash application has emerged as one of the most critical functions for businesses, as it directly impacts both cash flow and customer relationships. But what is cash application process, and how is AI transforming this fundamental process to enhance speed, accuracy, and efficiency?

Why Cash Application is Crucial for Companies

Cash application, while often overshadowed by other financial processes, is an essential part of accounts receivable (AR) management. It entails matching incoming customer payments to open invoices, and keeping accounts current and precise. When cash application management is done efficiently, it ensures that businesses maintain healthy cash flow, avoid disruptions, and provide superior customer service. Conversely, poor cash application management can lead to customer dissatisfaction, increased operational costs, and strained cash flow.

In mature as well as fast-growing markets, medium to large-scale businesses operate with complex payment systems, and the stakes are even higher. Delayed or inaccurate cash application management can result in collection inefficiencies, with businesses wasting time chasing already settled invoices. Moreover, mismanagement of the cash application process can tarnish a company’s reputation, as frustrated customers deal with errors like duplicated collection efforts or unapplied payments.

What is Cash Application Process?

Cash application is the process of matching incoming customer payments with the respective invoices. In a typical B2B setup, customers pay their bills or invoices via various payment methods, including checks, ACH (Automated Clearing House) transfers, and online payments. Each payment must be reconciled with the correct invoice to ensure the customer’s account is updated accurately.

Data Collection: Data is pulled from multiple sources like ERPs (Enterprise Resource Planning), billing systems, bank statements, and customer payment advices. Payments may also arrive through various channels such as check payments, wire transfers, and online transactions.

Matching Payments to Invoices: Payments are matched to open invoices based on the remittance advice from customers. This requires close attention to discrepancies like deductions, credit notes, and partial payments.

Reconciliation: Once matched, payments are reconciled against the company’s bank statements to ensure accuracy.

4. Handling Discrepancies: Issues such as short payments, overpayments, deductions, and disputed amounts must be resolved to maintain accurate records.

Common Challenges in Manual Cash Application

“Manual cash application processes are time-consuming and prone to human error. This process can be broken down into two main categories: Payment Reconciliation and Cash Posting.“

Payment Reconciliation

The most time-consuming part of the cash application process is payment reconciliation. This involves matching invoice amounts with remittance information and bank statements. For cash application specialists, visibility into accounts receivable and expected payments is crucial. This information is typically available in the accounts ERP. Keeping track of these payments ensures they are received in a timely manner and properly allocated to the appropriate accounts.

Depending on the payment mode and channel, these formats will vary. For instance, lockbox formats differ from ACH payment reports, and online payment information differs from wire transfers. Additionally, if the payments involve multiple currencies, FX conversion rates can further complicate the process. While bank formats are generally standard, the data still needs to be retrieved for payment reconciliation from either PDFs or Excel sheets.

During the payment reconciliation process, it’s key to segregate mismatched transactions from matched transactions by taking inputs from ERP data, customer remittance information, and bank statements. 

Common types of mismatches are due to following:

1. Deductions: Deductions occur when customers reduce the payment amount due to various reasons like returns, discounts, or allowances. Reconciling these requires matching the deduction details with the corresponding invoice and ensuring the justification for the deduction is valid.

2. Short Payments: Short payments happen when customers pay less than the invoiced amount. These discrepancies need to be investigated to understand the cause—whether it’s an error, a dispute, or an approved discount.

3. FX Differences: When dealing with international transactions, FX (foreign exchange) differences arise due to fluctuations in currency exchange rates. Accurate reconciliation involves converting payments to the base currency and accounting for any exchange rate discrepancies.

4. Tax Holds: Tax holds can occur if there’s an issue with the tax calculations on an invoice. These need to be reviewed to ensure compliance with tax regulations and to adjust the accounts accordingly.

5. Refunds & Chargebacks: Refunds and chargebacks require meticulous tracking. Refunds are payments returned to the customer, while chargebacks are transactions disputed by the customer and reversed by the bank. Proper documentation and validation are essential for reconciling these entries.

6. Payment Processing Charges: When using payment gateways or ACH processing services, fees are often deducted from the payment amount before it reaches the company’s account. Reconciling these charges involves matching the net payment with the gross amount and the associated fees.

Once these mismatches are identified and addressed, the transaction-level payment reconciliation provides a clear picture, enabling accurate cash posting entries into the ERP system. This clarity ensures that all payments are correctly allocated, improving cash flow management and financial reporting accuracy.

What is Cash Posting :

Cash posting is a critical step in the cash application process where payments are recorded in the ERP system to reflect accurate account balances. 

What are Cash Posting Challenges

Some of the main challenges businesses face include:

Unapplied Payments: Payments that remain unapplied for days or weeks after receipt cause significant delays. These unapplied payments can create redundancy in collection efforts, as the finance team might continue to contact customers for payments that have already been made but not yet matched and applied.

Misapplied Payments: Incorrectly posting payments to the wrong account or invoice can lead to extensive rework. This mistake requires manual corrections, consumes valuable time, and frustrates customers, potentially leading to disputes and delayed future payments.

Payment Without Remittance Advice: When customers do not provide clear instructions on how their payments should be applied, businesses may struggle to identify the correct account or invoice. This often results in unapplied or misapplied payments, further complicating the reconciliation process.

Multiple Payment Channels: Companies dealing with various payment gateways (e.g., Stripe, PayPal, and Dwolla) or handling both online and traditional check payments face the challenge of reconciling payments in different formats. The diverse formats increase the risk of mismatched data and complicate the reconciliation process.

These challenges create inefficiencies, directly affecting cash flow and customer satisfaction. Research shows that companies with poor cash application processes can experience a 20-30% delay in receiving payments due to manual errors and system inefficiencies. Streamlining and automating the cash posting process can significantly improve the accuracy and speed of payment reconciliation, leading to better financial management and enhanced customer relationships.

The Role of AI in Cash Application Process

Enter AI: artificial intelligence is now revolutionizing cash application process by automating much of the manual work and improving accuracy. Let’s understand how AI powered cash application process will create an impact on your cash flow management:

Automated Matching: AI powered cash application process can process vast amounts of payment data from multiple sources and automatically match payments to open invoices, eliminating the need for human intervention. This drastically reduces the time it takes to apply cash and ensures accuracy.

Error Reduction: AI powered cash application automation software reduces the risk of human error, particularly with misapplied or unapplied payments. By leveraging machine learning, AI systems can learn from past applications and improve their matching algorithms over time.

Handling Payment Discrepancies: AI powered cash application process can flag discrepancies such as short payments, overpayments, or missing remittance advices, and automatically suggest resolutions. For instance, if a payment doesn’t match the invoice amount, the system can identify potential deductions or adjustments based on past transactions.

4. Faster Reconciliation: AI powered cash application automation software accelerates the reconciliation process by matching payments with bank statements in real-time, minimizing delays and ensuring accurate financial records.

5. Handling Complex Payment Structures: AI powered cash application process systems can manage various payment types (check payments, ACH, online payments) and integrate with multiple payment gateways (like PayPal, Stripe, and Aydan), providing a seamless cash application process regardless of the payment method used.

Benefits of AI-Powered Cash Application Process

The introduction of AI into cash application automation software offers numerous benefits:

Speed: What once took days or even weeks can now be accomplished in minutes. AI significantly reduces processing times by automating the matching and reconciliation process.

Accuracy: AI systems are highly accurate, meaning fewer errors, less rework, and improved cash flow.

Scalability: AI can easily scale to accommodate growing transaction volumes, making it ideal for large businesses with high payment frequencies.

Cost Reduction: By automating processes, AI reduces the need for large accounts receivable teams, saving on labor costs.

Should Cash Application Be Outsourced?

While outsourcing cash application to third-party providers is an option, businesses must weigh the pros and cons. Outsourcing can reduce the need for in-house expertise and can be a more affordable option in the short term. However, it may introduce delays and limit control over sensitive financial processes.

On the other hand, AI-driven cash application solutions can offer a middle ground by automating processes while keeping them in-house. This provides greater control and ensures that the company maintains direct oversight of payment processing, while still reaping the benefits of automation.

Conclusion

The adoption of AI powered cash application automation software is transforming how businesses handle one of their most critical functions. By eliminating manual errors, speeding up payment processing, and ensuring accurate application of payments, AI offers a robust solution that allows businesses to streamline their operations and improve cash flow. As AI continues to evolve, it is poised to become an indispensable tool for finance departments looking to stay competitive in the fast-paced world of business.

Investing in AI powered cash application automation software can lead to improved customer relationships, faster cash cycles, and enhanced operational efficiency, positioning companies for long-term success in an increasingly digital economy.

[emagiacorp]

Cash Application & Order To Cash Software

Cash Application Software

Modernize your AR operations with Emagia AI-powered Cash Application Software. Efficiency in cash application is normally impacted due to the complexity of matching invoices to payments and remittances that come in many channels, in various data formats, in multiple document formats, in many languages and in many currencies. Cash posting is often expensive, time consuming and error-prone. Emagia’s intelligent cash application software is a cloud-based solution that facilitates touchless and frictionless cash posting. Using the solution, businesses can achieve auto-cash posting rates of over 90%, reduce unapplied cash by over 95% and cut down DSO by over 30%.

Order To Cash Software

Emagia delivers order to cash software that automates operations for global finance, F&A shared services, and BPO organizations. Powered by the Emagia AI platform, the Emagia Order To Cash Software leverages automation, analytics, and AI to provide digital credit, digital receivables, digital collections, digital deductions, digital cash flow forecasting, digital cash application, and digital billing and payments.

Emagia’s Order-to-Cash9 (O2C) addresses the growing complexity of AR management by simplifying and streamlining everyday workflow for AR professionals. The solution accelerates revenue cycles, lowers credit risk and maximizes the financial performance by driving efficiency and intelligence in finance operations.

[bostoncontemporaries]

Administrative Assistant at a Company in Boston

Our Tech client in downtown Boston is looking for an Accounts Payable/Receivable Specialist to support all aspects of the Accounts Payable/Receivable processes. Strong organizational skills and exceptional attention to detail are critical for this role. 3+ years of prior experience in this field is required and knowledge of Navision, Visual, or Enterprise Resource Planning (ERP) system equivalent is highly desired. Responsibilities include (but are not limited to): - Develops, directs, plans, and evaluates Account Receivable policies and procedures, and ensures external and internal controls and policies are adhered to. - Develops and implements best practices to improve processes and efficiencies. - For accounts where A/R and A/P overlap, recommend payments based on the management of the overall relationship. - Maintains and reconciles account receivables ledger accounts, financial statements, and reports. - Manages bills and payments, product/supplier invoices, and credit cards. - Ensuring that all customer invoices are accurate, maintain a professional ongoing dialogue with key customers to ensure consistent reconciliation. - Managing and applying for customer payments. - Tracking and preparing reports on past due accounts/customers. - Participate in team-oriented continuous improvement and automation projects. - Work closely with the other teams to ensure that there is appropriate information sharing to take appropriate action on accounts as needed - Process daily receipts ensuring prompt and accurate recording of payments to customer accounts; including all lockbox, ACH, and credit card payments. - Research and address unapplied and unallocated receipts. Qualifications: - 3+ years of experience performing Accounts Payable & Accounts Receivable - Bachelor's Degree in Finance or related field or an equivalent combination of education and experience - Basic knowledge of accounting principles - Ability to organize and prioritize to meet strict deadlines - Ability to problem-solve and troubleshoot quickly - Demonstrate attention to detail - Excellent excel skills with proficiency in other Microsoft Office Suite of products - Knowledge of Navision, Visual or Enterprise Resource Planning (ERP) system equivalent is highly desired - Proven problem-solving abilities - Always demonstrates professionalism through phone and in-person interactions, and through written correspondence including email - A commitment to maintain strict confidentiality - Absolute reliability and honest       This job posting is brought to you by Contemporaries Inc., one of the best temp agencies in Boston MA. Also available for payrolling employees in Boston and Greater Boston   Read the full article

[camila201-blog2]

How to Unapply a Credit in QuickBooks in simple steps?

Do you want to know how to Unapply a Credit in QuickBooks? If yes, then you are on the right platform. QuickBooks offers you the best tools to run a business digitally. Well, sometimes due to some mistake users has to face a bad phase. Like, when you did overpayment or wrong payment. Then you must settle it as soon as possible. You can easily do this once you learn how to Unapply a Credit in QuickBooks. In case of any doubt, feel free to contact us at our toll-free number 800-563-6160 to take experts’ advice.

[solutionssoftware4u-blog]

#QuickBooks #BillTracker #SolutionsSoftwareGroup www.SolutionsSoftwareGroup.com Purchase From Us!

Using QuickBooks' Bill Tracker If your business pays a lot of bills, you need an efficient system for staying current with them. QuickBooks’ Bill Tracker provides that.

Bill-paying may be your least favorite accounting activity. You definitely know how those checks and online payments affect your account balances, but it’s more than that. Staying up to date with your bills and paying them on time (but not too early) takes a supreme organizational effort.

If you’re using a manual bookkeeping system, you know how difficult it is to keep up. QuickBooks offers several options for helping you with this. You can set reminders and/or put the due dates on your calendar. If you’re using QuickBooks 2016 or later, you have access to another tool: Bill Tracker.

A Comprehensive Overview QuickBooks Bill Tracker is similar to the software’s Income Tracker. If you’ve used that, you know that it provides a way to get a birds-eye view of your accounts receivable. You can see where every transaction falls in your income “pipeline” (estimates, open invoices, etc.).

Bill Tracker works similarly, but for accounts payable. It has two advantages over just opening your Vendor Center and clicking the Transactions tab. First, it displays the Status of each transaction. Second, it contains Action links, so you can do more than simply open each entry.

Bill Tracker lets you switch between lists of different types of accounts payable transactions.

To open this tool, click Bill Tracker in your navigation pane. The screen that appears consists of two parts. Color-coded bars across the top represent different transaction types, Purchase Orders and Bills. The latter is further divided into Open Bills, Overdue, and Paid In The Last 30 Days. Each bar contains both the number of transactions that fall in that category and their total dollar amount. Click on one, and the list below changes to include only that type of entry.

Note: You can see in the image above that the Open Bills list has three alternate views that you can open by clicking on them in the drop-down list: Item Receipt, Credit, and Unapplied Payments. If you have questions on any of these, we can explain them to you, since you should know when to consult these lists.

Changing the View Bill Tracker defaults to the broadest view possible. That is, when you select a category of transactions, it shows all of the active ones. But a series of drop-down lists below the main toolbar gives you control over what subset of information is displayed there. You can narrow your list down to one vendor, for example, and choose a date range.

Data columns are different for each list. When you’re displaying Overdue transactions, the labels read Vendor, Type, Number, Date, Due Date, Aging, Status, Amount, Open Balance, and Action. You get a thorough description of each entry at a glance.

Taking Action As we said earlier, Bill Tracker lets you work with transactions as well as just view them. Click on Purchase Orders and open the drop-down list at the end of one of the rows in the Action column. You can see in the image below what your options are there, including Convert to Bill. When the Open Bills list is active, you’ll be able to click on Pay Bill.

Open the drop-down list in the Action column to see what you can do with the selected transaction.

To see what else you can do with individual transactions or groups of them, look in the lower-left corner of the screen and locate the Batch Actions and Manage Transactions buttons. With the Purchase Orders list open, click in the box in front of one or more to create a checkmark. Open the Batch Actions menu. You’ll see that only two options are available to you here; the others are grayed out. You can Print Selected Purchase Orders or Close Purchase Orders. Pay Bills is only active when you’re in a list that allows that.

Now, open the Manage Transactions list. You can create transactions from this menu by clicking on Purchase Order, Bill, CC Charge, or Check. If you select Edit Highlighted Row, the original transaction will open.

Warning: Remember that you should never write a check to pay a bill if you’re using QuickBooks’ bill-payment tools. If you’ve already entered the bill, click Pay Bills on the home page or open the Vendors menu and select Pay Bills. Talk to us if you have questions about this process.

QuickBooks offers multiple ways to take the same actions in accounts payable; Bill Tracker is just one. But this instant overview can tell you quickly where you stand with your vendors -- and help you avoid late payments.

Social media posts Did you know QuickBooks provides many ways to help you pay bills on time? Bill Tracker is one of them. Here is an overview on this useful feature.

QuickBooks’ Bill Tracker gives you an instant overview of your active accounts payable transactions. Are you using this useful feature? We can show you how.

If you’re using QuickBooks’ bill-paying tools, never write a check to pay a bill. You must use the Enter Bills and Pay Bills links. Find out how here.

QuickBooks’ Bill Tracker lets you work with accounts receivable transactions as well as view them. Find out more here and ask us about how this useful feature can help you.

[adsindubai]

Emirates wise VAT Return in UAE| QuickBooks UK | Tally ERP - Perfonec, 043866199

To File VAT in Emirates in now very easy. Accounting software we provides make it easy to file vat for 2018. Use our Software for easy filing of Vat returns for 2018 in uae. QuickBooks UK Accounting 2018 and Tally ERP 9 Software are VAT complaint Accounting Software. The best accounting software in Dubai and UAE. Perfonec Computer LLC, Dubai deals in QuickBooks UK Accounting 2018 and Tally ERP 9 Software with Reasonable price and Best Services. QuickBooks UK Software 2018 features: • Reclassify hundreds of transactions. • Write-off more than one invoices on one display screen. • Fix incorrectly recorded sales tax bills. • Troubleshoot stock troubles. • Identify modifications made to list gadgets from a same window. • Quickly view modifications to account balances from the preceding near. • Instantly healthy unapplied supplier and purchaser payments/credit with invoices/expenses. • Resolve the Un-deposited funds Account from one display. Tally ERP 9 Accounting Software (Single and Multi-User) Tally ERP 9 is your perfect business management solution and VAT compliance software. Premium Features of Tally ERP Software: • Accounting & Finance • VAT Compliance • Inventory ,Sales, Purchase, payroll and bank Management • Job Costing • Point of Sales • Manufacturing Module • Post Dates Cheque Management • On demand data synchronization • One-click zero-configuration installation experience To get More Information and Pricing: Perfonec Computer LLC Visit our Website - https://ift.tt/2zRox4j Contact us at + 0582568720/ 043866199 Or Email us at sales@perfonec.com or info@perfonec.com

[shrutibansal38]

The 5 Must Have Features : How To Make Retail Apps That Actually Sell

Well made retail apps can boost your overall sales and contribute a large chunk of revenue to your existing business. Learn more on how to make one:

30% of all online shopping purchases now happen on mobile phones. If you have a brick and mortar retail brand or an eCommerce website then it’s smart to invest into a mobile retail app.

Revenues may not skyrocket with just another mobile app that is not built to meet user behaviour and expectations. Sales and conversions need  well built apps with well planned strategy around UX and well designed UI teamed up with a sound goto market strategy. For your convenience we have put up a  checklist of five’ must include features’ that will make the users click and buy from your m-store.

1. Design for Multiple Devices

Enough has been said about mobile responsive design! Developers, Designers, Marketers and Entrepreneurs have understood that building e-commerce stores for mobile devices and tablets requires an understanding of mobile layouts.

In mobile app development company, What most web and native app developers tend to ignore is fluid responsiveness.

Design branches into two other categories: Fixed and Fluid.

With fixed design, the layouts may or may not adjust well to all device screens.The app may look and perform brilliantly in one Android device but the elements and typography may not adjust well to another screen of different dimensions thus marring user interaction.

For retail apps aesthetics matter a lot more than any other utility app. What looks good, sells better. If you employ only fixed responsiveness the text in your app may look jagged on a tablet screen or the product images and blocks may be slightly distorted.

The solution to this is fluid design. Fluidity means that all design elements like text, typography and graphics follow a simple rule of screen size percentage ie the area covered by an element adjusts according to the percent space of the available screen in height and width. 

This means that your retail app aesthetics remain intact. The principle of fluid design and viewports  applies primarily to web apps, hybrid app developers need to take a cue .

It may or may not be possible to use high resolution images always owing to the lesser  response time needed in apps. It’s advisable to use high resolution to accommodate the retina display in Apple and luxe Android phones. SVGs (Scalable Vector Graphics) for logos and graphics should be a standard adoption.

2. User Friendly Categories, Filters and Sorting

Think like your user. Once you are on a retail app’s home page the first intent is to go to the categories to narrow down the products.

Filtering/sorting logic is a part of the greater scheme of UX design and user workflow. All eCommerce websites and apps sort their products and categories to maximize sales and revenues.

Sound research data from Baymard’s on eCommerce product list usability makes a good reference to understand how one should design and sort product lists. 

Though the research is based on optimizing product lists in websites from our experience on developing apps in retail we know that this can be extrapolated to apps.

Baymard’s further illustrates the best filtering practice as implemented by Macy’s.

Six practices that are relevant to retail apps :

1.  Show category specific filters. 2.  Put important, most relevant filters and categories on the top. 3.  Allow multiple filters of the same type (for example sizes in S and M if the user is searching for both, multiple colours and multiple brands.) 4. Use thematic filters (especially for retail clothing and accessories app, themes based on real life descriptions help the user narrow down references.) 5.  Truncate the applied filter lists so they don’t cover the unapplied filter options. 6. Display applied filters clearly for user convenience.

These are intricate findings of sound user behavior research. For an optimum retail app experience they should be implemented into the core logic while development.

3. Design Product Page Details

The product page in retail apps are the showcase for the sellables. Important details like pricing, product description, product image, or the 360 degree view, cross selling  and upselling displays should be included here.

Cross selling means that you display related products on the product page the user is buying from,for example showing a headphone along with a popular mobile phone is a good selling strategy. 

Upselling is when you display better brands and options that are slightly steeper than the existing product on the page.The users may end up buying more from you. Product pages in apps with more visual information are more likely to perform better.

High resolution images and page responsiveness and loading time are the places to make a tradeoff. Wherever possible use high quality images. Also make the navigation from and to the product page easier. A good strategy is to have remarkable CTAs for better sales.

Your user makes the crucial decision, ‘to buy or not to buy’ here. Design better product pages for better sales.

4. The Two Tap Rule for Check-Outs

Marissa Mayer’s advocated the two tap  for apps in the beginning of 2015. Since then designers have heavily debated on the two tap rule and how a stringent adherence can actually reduce user interaction.

True, one can not replace the much needed interaction while gathering information, asking for user specifications. But, something as simple as a decision to buy shouldn’t be delayed by the number of clicks. For mobile apps’ the two tap rule’ is a good yardstick on product to cart and cart to checkout pages.

Remember the controversial one click patent by Amazon?  It has actually helped them make Billions.In mobile apps, they have a ‘Buy Now’ option that takes the user from the product page to checkout straight.

5. Payment Gateways as a Payment Option for Online Payments

In certain regions of the world, where plastic money and online banking has penetrated in deep, online payments are preferred over COD. However sharing credit card information directly with a small or midsized business retail app is still a security taboo. One way of ensuring users actually buy without hesitation is integrating trusted payment gateways like Paypal, Stripe,Paytm.

Integrating payment gateways/wallets into your retail app or redirecting to a payment gateways page are the two options you have at the checkout stage.

Both options have their advantages and disadvantages:

Payment Gateway Integration:

Advantage: 1. You control the UX at the crucial transactional stage which means you could personalize the page for your benefit. 2. An integrated payment gateway is an in- app page.

Disadvantage: 1. Since the user’s credit card information is passing through your app you will have to get a PCI standards approval for the code. (PCI  data security standards exist in the physical world and online, for credit card security.)

Redirecting to Payment Gateway’s page:

Disadvantage :

1. You may not be able to control the user’s experience since the page is a third party entity. With a redirection and the ensuing lag, the user may also get hesitant about buying thus making a leaky hole in your sales funnel.

Advantage:

1. You have no compliances or standards such as PCI to seek certification for.

A sense of security will ensure you users do make that final decision to trust you with their money thus increasing sales. As an added measure you could include trust badges and win user’s trust.

The UX and UI of an app play a larger role in determining whether your users will buy from your app or not. Keep user convenience and app security in mind. At AppStudioz we build our apps with secure development practices and great design.

Contact us, if you are looking for mobile app development consultation at enterprise@affle.com

[supertheoristking]

Executive - Accounts Receivables

Executive – Accounts Receivables

[ad_1] Gob title: Executive – Accounts Receivables Company: NTT Data Gob description: on timely basis. Sending weekly Statement of Account, open AR report and unapplied Payment report to the Management. Provide… Expected salary: Location: Gurgaon, Haryana Job date: Fri, 03 May 2019 05:18:38 GMT Apply for the job now!

[ad_2]