Handling remittance and cash allocation processes can be complex and time-consuming tasks for businesses. Finance professionals consider the manual processing of payments as a major challenge in their daily operations. Manual processes are often prone to errors, and it can be onerous to match payments with corresponding invoices.
Automation of accounts receivable processes can lead to a significant reduction in processing time, freeing up staff to do more added value activities. In this blog, we will explore the benefits of automating remittance and cash allocation processes and how they can help businesses streamline their financial operations.
How it works:
Having a robot sit on the remittance advice inbox is the first step towards automation. The robot will look for emails that have attachments with remittance advices, use natural language processing (NLP) and document understanding technology to ‘read through’ the document, then perform various checks based on the transactional details extracted. Once the remittance has been verified, the cash is allocated against invoices and cleared, which also free up your customers’ credit limit.
Dealing with Clients that don’t provide remittance advice:
Simple rules can be set up based on payment terms to handle cash received without a remittance advice. If a cash value comes in without transactional details, the robot will go in and look for transactions within the payment period, match the cash values against it, achieving up to an 80% match rate.
Automating remittance and cash allocation processes can help businesses streamline their financial operations, save time, and reduce errors.
If you are struggling with these processes, get in touch now for a demo or consultation to free up valuable resources, reduce costs, and improve your financial efficiency.