Interviewees reported 138% ROI on Cash Application from improvements in cash posting efficiency, reduced manual effort, and AI-driven matching
Versapay, the leading Accounts Receivable Efficiency Suite, today released the results of Total Economic Impact™ (TEI) for Versapay’s Cash Application solution to be 138%, representing a payback window of less than six months.
Midmarket businesses struggling to improve cash flow face numerous challenges with outdated internal processes for cash application. In a recent SSON survey, commissioned by Versapay, 85% said that they are still manually matching payments with remittance—this limits their access to liquid cash and increases their reliance on credit. Customers interviewed reported that key challenges before implementing Versapay Cash Application dealt with manual and time-consuming processes, errors and discrepancies in cash application, complex reconciliation processes, and lack of visibility and control into cash positions and outstanding invoices.
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Respondents were simultaneously looking to reduce manual effort and increase efficiency. Tangible benefits included freeing up resources for other priority accounts receivable (AR) work, automating cash posting via AI, improving accuracy and minimizing discrepancies. Overall, they sought a product that would accelerate the cash application cycle for faster cash reconciliation.
By implementing Versapay Cash Application, organizations significantly streamlined several manual processes, reduced errors, minimized reliance on credit, and significantly improved speed to cash.
The study cites benefits of $527,300 and an ROI of 138% in a 3-year period. Further, the study cites additional benefits over that same period:
- 69% improvement in operational efficiency by speeding up the application of payments to invoices. This improved efficiency, coupled with a reduction in processing errors, translates to a value of $209,500.
- Over $200,000 NPV in interest cost savings by decreasing the need for external financing via improving days sales outstanding (DSO), cash flow optimization and improvements in working capital management.
- Reduction in unpaid invoices. The solution accurately and promptly applies customer payments to existing invoices, reducing outstanding receivables and minimizing bad debts valued at $60,400 NPV.
- Improving the cash handling process at store locations. Versapay’s remote deposit capability improves the cash handling process as store managers can now deposit cash remotely, resulting in savings of $57,000 NPV.
Midmarket companies that use Versapay are seeing direct efficiency gains from Cash Application. Ed Aguero, Chief Financial Officer at Cole, Scott & Kissane P.A, not included in the Forrester TEI, stated, “The streamlined and accurate cash application process we have been able to achieve as a result of Versapay has drastically improved our ability to perform the critical financial functions of cash flow forecasting and budgeting, which are especially important at year-end.”
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