Cash application is part of the bank reconciliation process.
It involves matching incoming payments to their corresponding invoices and accounts. Checks, ACH, Wires, and Credit Card payments are reviewed and then matched to open invoices marked as paid.
Problems With a Manual Cash Application Process
A manual cash application process is highly labor-intensive, prone to human error, and slow.
With an increase in business activity and more cash to be applied to invoices, the manual resources required will only increase - which may also lead to employee burnout or low productivity.
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, this is a huge challenge.
Cash Application Automation with Paystand
Paystand implements advanced technologies that identify, retrieve, and match payments and remittances from various sources without manual intervention. We use numerous data points to match these records, such as invoice number, customer name, amount, and payment date, to match cash payments received to their corresponding outstanding invoices in the merchant’s accounting system, NetSuite, or Sage Intacct.
Automating the cash application is recognized as a quicker, more scalable, and more innovative way to handle the bank reconciliation process.
Visit Paystand's blog to learn more about the importance of cash application.