New Auto-Cash Technology Yields Strong ROI for AR

Having automated key previous stages, why accept delays just when you’re about to cross the finish line and apply the cash? It’s like an in-the-clear receiver dropping a perfectly executed pass in the end zone.

Cash App Automation Levels

As it happens, it’s not unusual for even highly automated AR departments to still be relying on manual or only partially automated processes at the final cash application step.

This discrepancy is illustrated in Aberdeen Group’s July 2011 survey, The Order-to-Cash Cycle: Enhancing Performance with Process Automation. Remember that cash application must be automated at both the stage when payment is received by AR and when funds actually clear at the company’s bank.

Even among Aberdeen’s “best-in-class” performers, automation at both stages is still shy of the 50 percent mark, while among “laggards” it is stuck at around 20 percent (Figure 1).

A key success factor is companies’ ability to interface electronically with their banks: 63 percent of best-in-class do so compared with 37 percent of laggards.

Challenges to Cash App Automation

Ideally cash is posted the day it is received. However, ...

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