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Unreconciled pile of outstanding invoices hampering efficiency? Think Automation

Anitha Bhat Serrala Cash App Product Marketing

Anitha Bhat

03-07-2023 5min read

In the current fast-paced and economically strained business world, efficiency is key

Your AR team can be frustrated when an unreconciled pile of outstanding invoices is hindering productivity. The good news is that there is a solution: automation offers finance teams the ability to streamline their processes and eliminate manual data entry tasks associated with managing outstanding invoices. Additionally, it can empower your AR team to become strategic thinkers by providing visibility into key KPIs such as working capital. In the long run, this not only increases the efficiency of the processes and people within an organization, but also contributes to the growth of the company. With an intuitive tool such as an efficiency calculator, CFOs and finance leaders can build a strong business-case for cash application automation.

Today as businesses automate most of their functions including sales, marketing, and HR. Automating accounts receivable (AR) processes such as cash application should be on top of finance leaders’ agendas since the finance department is the brain of any organization. 

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Manual cash application processes causing errors and delays in reconciliation? Automate!  

Within finance one of the most tedious tasks is to apply cash - reconciling customer payments with outstanding invoices. Due to the sheer volume of outstanding invoices and many different customer payment methods (Cheques, card, ACH, PayPal etc.) manual and repetitive tasks can be a huge bottleneck in the cash application process causing errors and delays in reconciliation.   

Corporate finance is often hampered by manual and repetitive tasks, which are often unnecessary when considering existing and available solutions. The number of tasks still performed manually by AR is shocking. Automating AR processes such as cash application will help reduce the amount of time spent manually tracking down payment information or reconciling payments across multiple accounts. This means less time wasted on tedious manual tasks and more time spent focusing on more important and strategic tasks. Also, automation can eliminate human error by identifying discrepancies in invoice records and automatically sending out requests for exception handling, helping ensure accuracy in accounting practices while freeing up valuable resources within the organization.  

Avoid employee frustration from repetitive tasks translating into burnout and low productivity 

As organizations grow and evolve, employee experience is becoming increasingly important. Attracting and retaining employees is also a constant challenge. According to Qualtrics, 2023,  more than a third (38%) of employees are experiencing symptoms of burnout and, as a result, are likely to be less productive. This year, the top driver of burnout is ineffective processes and systems. 

When employees are subjected to monotonous, repetitive tasks day-in-and-day-out they can feel stressed and unfulfilled at work, negatively impacting Employee experience. Further, the pressure to crank out multiple tasks often results in poor quality and productivity. 

It’s essential that finance leaders recognize this issue so they can address it before it becomes detrimental for both employees and business performance alike. Automation is often touted as a way to increase efficiency and grow the business, but it also offers its employees a better work environment. Taking proactive steps such as introducing automation solutions into manual intensive processes such as the cash application process, will help not only reduce workloads but will also boost employee morale by allowing them more time for upskilling and strategic thinking. 

“The greatest asset of a company is its people”. Keeping your teams motivated, engaged, and helping them grow as individuals is as important as winning in the market. Automation enables you to foster a collaborative and healthy culture among employees, making them happier and more productive. You can empower your AR teams with automated cash applications to reduce manual, repetitive tasks in reconciling outstanding invoices, and transform them into strategic thinkers who will be more engaged and motivated to contribute to the company's growth. 

How automated cash application can contribute to business efficiency and growth 

Growth is undoubtedly one of the top initiatives for organizations globally, irrespective of the size and the industry. When internal processes are cluttered and inefficient, data visibility is a huge challenge. Without real-time visibility into key financial KPIs such as working capital, finance leaders can be left running pillar-to-post trying to make short-term decisions such as daily collection plans and long-term investment decisions. In short, what finance leaders and CFOs need for growth planning is real-time access to financial health. In this scenario automation is becoming more and more relevant as businesses use technology to transform the way they work and artificial intelligence (AI) continues to have a high impact on the way technology helps us drive efficiency and growth. 

According to McKinsey, AI adoption has nearly doubled from 20% in 2017 to 50% in 2022. Among these capabilities, Robotic Process Automation (RPA) is the most deployed.  With the implementation of automation and AI in the cash application process companies can gain better visibility into their finances by applying cash first thing in the morning. When you don't have to worry about your cash application process crumbling because of piling outstanding invoices, you can also grow more sustainably. Intelligent cash application software automates your incoming payment processing and accounts receivables management, reduces costs, and minimizes DSO (days sales outstanding)-related risks. It decreases manual efforts, eliminates human errors, and helps eliminating the unreconciled pile of outstanding invoices. 

Don’t let outstanding invoices come in the way of your goals. Automate today! 

The primary goal of finance departments these days is to reduce costs, improve growth while increasing people efficiency and contentment. Automated cash application will improve processes by reducing manual and repetitive tasks in reconciling outstanding invoices. You can learn more about the time and cost savings achievable through automation using various free efficiency tools. Artificial Intelligence (AI) and automation should be included as a value-add for employees, not as a replacement. Supporting the AR team with digital resources can help empower them and elevate their roles. It will also enhance employee experience by freeing them from manual data entry and motivating them to become strategic thinkers. Further, with automation and Artificial Intelligence (AI), an intelligent cash application automation software will help optimize error-prone AR processes and provide better visibility into the working capital leading to sound business decisions for growth.  

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ROI calculator: Discover your easy path to efficiency and savings

This calculator utilizes basic inputs from your current AR process to showcase the average savings achievable through cash application automation. Try it now!