Many Accounting and Finance departments still spend countless hours manually matching payments to invoices, sorting through remittance details, and correcting errors that delay the month-end close. Manual cash application is time consuming, error prone, and pulls staff away from handling other important tasks.

Automation changes that. It offers a more accurate, consistent, and predictable way to apply payments each day. Instead of chasing down missing information or keying in data line by line, A/R departments can rely on a system that automatically reads, matches, and posts payments.

Why Manual Cash Application Falls Short

Cash application is often complicated because payments come from many sources and formats:

• ACH, checks, and credit cards
• Portals that send partial or inconsistent remittance data
• Customers who pay multiple invoices in one transaction
• Short pays, claims, and deductions requiring manual review

When payments and remittances don’t line up, A/R teams are forced to spend hours researching accounts, rechecking invoice numbers, and trying to understand customer notes.

The result? Delays in posting, unresolved aging, and a slower close.

The Case for Automation

A strong automated cash-application solution pulls in payments and remittance data, matches them to the open invoices, and posts them to your ERP with minimal intervention.

It handles:

• Customer identification
• Multi-invoice and partial payments
• Remittance extraction from banks and portals
• Exception flagging for anything that needs review

Your team focuses on the outliers—not the routine.

Where Automation Fits in the AR Workflow

Cash application automation works best when paired with:

• Online payment options
• Digital invoicing
• Structured remittance communication
• ERP-integrated AR workflows

When these systems are aligned, AR teams gain visibility, control, and time.

Tangible Benefits for Finance Teams

• More accurate posting: Fewer keying errors and misapplied payments
• Real-time visibility: Payments are applied faster, improving cash position insight
• Less manual work: Staff shift from data entry to reconciliation and strategy
• Shorter close cycles: Month-end isn’t delayed by a backlog of unposted payments
• Improved customer experience: Fewer posting errors, fewer disputes

Industries like manufacturing, automotive, building materials, and distribution, where high-volume, complex payments are the norm, are seeing significant ROI from automating this process.

A Smarter Path Forward

Automated cash application isn’t about replacing people. It’s about eliminating inefficiencies and enabling your finance team to work smarter with cleaner, more reliable financial data.

How UTA Supports This Transition

UTA offers tools that support automated cash application by improving remittance data quality at the source. Payment channels like Online Bill Pay, Digital Invoicing, and Text-to-Pay generate clean, structured remittance that syncs easily with ERP systems.

This means:

• Easier payment identification
• Fewer missing or incomplete remittance details
• Faster posting into your ERP
• Less manual cleanup

Our goal is simple: We’re here to help you modernize cash application by delivering clear, reliable payment data that supports automation and helps AR teams work with fewer roadblocks.

If you’d like to learn more about how UTA can help you streamline and automate your cash application processes, please feel free to reach out for a complimentary analysis.

Mark Tapia
Vice President Business Development
mtapia@unitedtranzactions.com
800.858.5256 ext 3028.
Direct: 786.264.7028.