Workflow Templates: Cash Application Checklist

Verify the total amount received matches the bank deposit slip

Ensure that the date of the bank deposit corresponds with the business date of receipt

Record the payment method for each transaction (e.g., check, wire transfer, credit card)

Match each received payment to the appropriate customer account

Apply payments to the oldest outstanding invoice first, unless directed otherwise

Adjust for any bank fees or transfer costs that are not part of the invoice payment

Investigate any discrepancies between the amount received and the invoice amount

Communicate with customers regarding any short payments or overpayments

Correctly apply or refund any overpayments and document the action taken

Reconcile all cash receipts with the general ledger on a daily basis

Resolve any reconciling items promptly to ensure accuracy of the accounts

Review the accounts receivable aging report to ensure all payments are accounted for

Maintain copies of bank deposit slips, remittance advices, and other payment documentation

Update customer accounts and invoice statuses promptly after payment application

Securely store all records in accordance with company policy and regulatory requirements

Analyze the cash application process for potential improvements

Implement automation tools to reduce manual entry and improve accuracy

Provide regular training to staff on the latest cash application procedures and technologies

Cash Application Checklist