Is Your Cash App a Cash Trap?

   

Don't Keep Your Cash in Suspense

 

Cash application is the process of applying electronic payments or lockbox receipts, recording those payments and depositing them in a company’s bank account. That may sound straightforward, but a surprising number of bottlenecks can trap your cash along the way. Duplicate payments, missing or incorrect account or invoice numbers, customer disputes and misapplication are some of the so-called exceptions that take time and skill to resolve. Meanwhile, your company is sitting on a stack of unapplied or incorrectly applied money that can trigger audit and compliance problems and is doing nothing for your business.


You can turn idle cash into hard-working capital by conducting a thorough internal review of all the steps in your cash application process, from order entry and billing to customer care. Look for opportunities to set up ongoing controls, alerts and maintenance routines. Establish metrics-based analyses. Explore ways to improve communication with accounts receivables staff and customers. 

For the most comprehensive, sophisticated cash application solutions, consider looking outside your company. An outsourced partner with expertise in the area has access to state-of-the-art workflow tools for tracking, monitoring and streamlining your systems, resulting in improvements in accuracy and Time-to-Process that can be dramatic. 

Learn more about ways you can free your cash from captivity by downloading iQor’s definitive e-guide, “Cash Application Today: Avoiding Cash Traps in a Slow Growth Economy.” 

iQor is the leading provider of exception cash application process servicing today. Contact Us to talk about your company’s needs.