WHY ALLOCATE CASH WITH ESKER?
Managing multiple payment sources and formats (e.g., banks, lock boxes, emails, PDFs), not to mention the different levels of data in each document, can be a real pain for AR teams trying to allocate cash in a timely and effective manner. Esker's AI engine automates the manually intensive process of matching payments received from all incoming payment information sources so your team can focus on higher-value tasks and control cash flow in real-time.
- Empower StaffAccelerate allocation & free up AR teams to focus on exceptions & strategic tasks..
- Strengthen RelationshipsSatisfy customers by ensuring account accuracy & resolving disputes rapidly.
- Enhance VisibilityGet insights into cash that's likely to be received as well as your total receivables.
- Accelerate DeductionsSpeed up your team’s deductions & dispute identification process.
Pamela Rochester │ Operational Team Leader | Laminex
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SIMPLIFIED REMITTANCE MANAGEMENT
POWERED BY AI TECHNOLOGY
Inefficient remittance management not only drains your AR team’s time and labour, it has a direct impact on company revenue. That’s why Esker’s digital software solution, powered by AI technologies, eliminates these costly bottlenecks through:
- Email triage — extracting & routing remittances to the Cash Application solution
- Intelligent data extraction — extracting remittance advice information (e.g., header data, invoice, credit lines, etc.)
- Machine learning & teaching — extracting data from remittances & significantly speeding up cash allocation
MATCHING MADE EASY
No remittance included? Not a problem. Esker’s Cash Application solution comes equipped with powerful AI technology that makes it easy to auto-allocate payments without remittances — freeing up time for your team and cash flow to your business.
HOW IT WORKS
Esker’s AI Engine captures data from payment files and accurately extracts the necessary information (e.g., invoice number, customer name, PO, etc.). The solution analyses data in real-time to always look for the best possible match. If several are possible, suggestions are provided to the user and can also create business rules to automate specific allocations or exceptions. Lastly, Esker’s software solution also supports rapid reconciliation of payments with your ERP via native integrations or by extracting an output allocation file.
HANDLE EXCEPTIONS & SHORT PAYMENTS WITHOUT HASSLE
Simplify your cash application process with all payment information visible from one interface:
The road to rapid cash allocation can be a bumpy one due to obstacles like short payments, overpayments, discounts, claims, and more. Esker’s software solution paves the way for an overall smoother, simpler, and smarter automated experience via our powerful AI technology and configurable rules to automate all types of exceptions.
SEE IT ALL, DO IT ALL FROM ONE INTERFACE
Even if user validation is necessary in the event of multiple allocations or complex exceptions, Esker ensures it has little to no impact on the speed of your process — enabling your team to access information and take action from a single interface. This can include viewing:
- Extracted payment information & check/remittance image
- Help messages & allocation suggestions via digital assistance
- Open items details (e.g., invoices, claims, credits, etc.) via a direct link to customer accounts & tooltips
- Internal & external conversations
- Quick action buttons to perform adjustment entries, skip or recycle payments, etc.
MONITOR INCOMING CASH ANYTIME
You can’t improve what you can’t see! Esker’s Cash Application cloud solution empowers users by providing the following:
- Centralised payment information
- Clear KPIs on remaining cash to allocate
- Output file reports facilitate reconciliation into the ERP or share allocation statuses
- Dedicated remittance automation trend dashboard to monitor & improve your automation rate
- Graphs to monitor activity (e.g., auto-allocation status, remittance processing, allocation per user, etc.)
- Workspace to easily navigate to your accounts receivable dashboard to view cash position (e.g., cash to collect, cash tied up in invoices not sent, etc.)
FREQUENTLY ASKED QUESTIONS ABOUT CASH APPLICATION SOFTWARE
WHAT IS CASH APPLICATION IN ACCOUNTS RECEIVABLE?
Cash application is part of the accounts receivable process that involves matching incoming payments with outstanding invoices and allocating them to the appropriate accounts. This critical process enables businesses to monitor cash flow and capital accurately and efficiently, ensuring funds are utilised effectively and promptly.
HOW CAN AUTOMATION IMPROVE CASH APPLICATION IN ACCOUNTS RECEIVABLE?
Automation software can significantly improve cash application in accounts receivable in several ways. For instance, automated solutions can accommodate business growth by efficiently handling more invoices.
Meanwhile, ERP integrations provide a centralised point for global billing, ensuring compliance with local regulations. Centralisation also increases efficiency, reduces errors and minimises manual processing costs.
By optimising invoice processing and workflows, AR teams are freed from mundane tasks and can instead prioritise late payments, resulting in enhanced forecast cash flow management and employee satisfaction. Browse Esker’s case studies today to learn how your business can benefit from cash application software.
WHAT ARE THE BENEFITS OF USING CASH ALLOCATION SOFTWARE?
Esker's Cash Application solution fully automated the cash allocation process, covering everything from capturing remittances to reconciling invoices within the ERP. This automation had a ripple effect, benefiting not only cash allocation but also downstream processes such as collections.
With the centralisation of payment information, the team at Fletcher Building could eliminate the time-intensive chore of gathering data from remittances and banks. Furthermore, the solution ensured precise data extraction from payment files and remittances, efficiently matching incoming payments with open invoices. In cases where auto-allocation wasn't possible, or remittance details were incomplete, Esker Synergy AI intervened with intelligent line-item suggestions.
As a result, Esker's solution reduced unallocated payments by 20 – 30%. Meanwhile, month-end processing time decreased by 40%. The labour hours saved thanks to automation are now applied to more important, value-generating tasks within the company, such as making collections calls to customers.
Consequently, this contributes to timelier payments and empowers teams to put their energy to higher-value tasks. It also culminates in accurate customer statements, improved Days Sales Outstanding (DSO), and heightened employee well-being.
This is also exemplified in the case of Laminex. Previously spending eight to 10 hours on payment allocation during high-volume days, the team now completes this work in only four to six hours.
Besides this, cash allocation software enables easier tracking of customer balances, cash flow and fraudulent behaviour, facilitating proactive response for credit limit exceedances and suspicious activities. It also helps in identifying upselling opportunities by tracking customer purchase data.
Additionally, it ensures timely resolution of disputes and customer payments, leading to greater customer satisfaction and smoother collections. A streamlined process also enhances accuracy and efficiency while saving on costly manual processes.
CAN CASH ALLOCATION SOFTWARE HANDLE COMPLEX ALLOCATION SCENARIOS?
Yes, cash allocation software like Esker’s can handle complex allocation scenarios efficiently. Even in cases where user validation is required for multiple allocations or complex exceptions, Esker ensures minimal impact on process speed by providing a single interface that users can work on, streamlining the process.
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