WHAT DOES A CASH APPLICATION SPECIALIST DO?

Updated: Oct 11, 2024 - The Cash Application Specialist is responsible for the daily reconciliation of multiple bank accounts conducted alongside the receipt and posting of customer payments, ensuring accurate financial tracking. This specialist researches cash variances and credit card discrepancies, assists with customer account inquiries, and collaborates closely with the Accounts Payable and Billing Teams to maintain timely payments. Additionally, the role involves cross-training within the Administrative/Finance team, processing all daily cash receipts and transactions across multiple platforms, and implementing new methods to enhance performance and productivity.

A Review of Professional Skills and Functions for Cash Application Specialist

1. Cash Application Specialist Details

  • Cash Receipts Management: Timely and accurate posting of cash receipts to customer accounts, balancing the cash applied daily to bank account balances and amounts reported in the Treasury workstation.
  • Transaction Processing: Processing and reconciliation of daily lockbox, EFTs, CC Payments, and manual cash deposits for auto-posting into the system.
  • Exception Resolution: Resolving exceptions that require manual intervention to apply for the payment.
  • Payment Trend Analysis: Identifying payment trends (short pay/overpay/no pay) and communicating with the Supervisor.
  • Cash Posting Issue Resolution: Resolving issues associated with cash posting by working in a customer service team-oriented manner with both external and internal parties.
  • Accounting Close Management: Meeting monthly Accounting close deadlines and processing month-end journal entries in the General Ledger.
  • Daily Transaction Processing: Daily processing of cash deposits, EFT payments, payments made by checks, and generating credit/debit memos.
  • Vendor Relationship Management: Handling/managing vendor relationships for documentation remittance.
  • Transaction Research: Researching all transactions related to unapplied cash, and continuing follow-up.
  • Partner Communication: Following up with vendors and business partners to determine the direction.
  • Operational Collaboration: Partnering with the Accounts Receivable and operations team to troubleshoot and resolve payment variances.

2. Cash Application Specialist Responsibilities

  • Batch Processing: Take responsibility for separating daily lockbox/deposit batch.
  • Data Identification: Identify the appropriate entity and patient account number for each payment.
  • Payment Application: Apply payments accurately and timely to patient accounts within the designated system.
  • Log Preparation: Prepare daily cash posting log detailing activity by entity.
  • Reconciliation: Ensure daily cash posting reconciles to system reports.
  • Document Management: Make copies of all short payments, overpayments and denials to be given to the appropriate AR Specialist.
  • Scanning: Scan daily deposit reports, payments and collection journal reports into the document management system.
  • Process Improvement: Assist in the development and improvement of the Cash Application processes to create a more streamlined approach.
  • Safety Compliance: Maintain and promote a strong safety culture and follow all safety policies, procedures, and regulations.
  • Hazard Identification: Identify and communicate workplace hazards and correct or seek assistance in correcting unsafe actions or conditions.

3. Cash Application Specialist Job Summary

  • Scanning Skills: Scan daily deposits received from third-party payors and patients
  • Payment Processing Skills: Post/apply payments to the patient’s account according to the EOB’s and remittance advices
  • Account Management Skills: Identify and flag accounts that require additional follow-up with third-party payors or patients
  • Adjustment Posting Skills: Post credit and debit adjustments to the patient’s account using appropriate codes
  • Research and Resolution Skills: Research unidentified cash receipts and resolve issues
  • Reconciliation Skills: Reconcile daily deposits to the posted batch and address any discrepancies
  • Reporting Skills: Generate daily, weekly, and monthly cash reports and review for accuracy
  • Refund Management Skills: Process refund requests, and reconcile and manage the unapplied cash account
  • Financial Review Skills: Perform designated financial review activities, and prepare weekly, monthly, and quarterly reports

4. Cash Application Specialist Accountabilities

  • Accounting Execution: Execute a range of foundational accounting tasks in agreement with normal procedures, including general accounting tasks.
  • Payment Processing: Post check, credit card, and cash payments as well as ACH and wire payments to accounts.
  • Adjustment Assistance: Assist with manual adjustments of misapplied cash payments.
  • Deposit Preparation: Prepare deposits for processing and month-end close, and verify codes and documents.
  • Account Balancing: Balance bank accounts, posting and balancing financial data in some different ledgers.
  • Issue Resolution: Help resolve payment issues by contacting clients, assist in setting up payment plans.
  • Stakeholder Communication: Provide information to the sales/marketing department, shippers, customers, and other stakeholders.
  • Report Compilation: Process payments and compile segments of annual reports and monthly closings in compliance with GAAP.
  • Organizational Representation: Be an ambassador of the mission, values, and culture of the organization.

5. Cash Application Specialist Functions

  • Daily Deposits Processing: Process and post deposits received for all Advanced Group companies daily.
  • Daily Banking Reports: Reports to be pulled down from the bank daily.
  • Documentation Maintenance: Ensure that adequate documentation is maintained to support all payments.
  • Variance Resolution: Work with the Front Office Staff and Shared Services departments to record and rectify any variances.
  • Cash Reconciliations in VMS: Work within the VMS system for cash reconciliations utilizing Excel.
  • Cash Management: Maintain the cash on account to within a predetermined threshold.
  • Client Contact for Cash Issues: Effectively contact clients to resolve cash posting issues.
  • Customer Information Maintenance: Take responsibility for maintaining customer and portal information.
  • AR and Billing Collaboration: Work directly with the AR and Billing departments on any issues found.
  • Procedure Development Assistance: Assist the Manager in developing the procedures for the VMS system and Cash Posting function.
  • Team Training and Cross-Training: Train new members of the team in designated duties, and cross-train to support other team members.

6. Cash Application Specialist Job Description

  • Cash Management: Posting daily cash receipts, including lockbox deposits, cash deposits, wire transfers, credit card payments, etc.
  • Interdepartmental Collaboration: Daily cooperation with the collection and credit department.
  • Financial Resolution Support: Working closely with GL and the Treasury Department to support the resolution of unreconciled items.
  • Credit Card Processing: Processing of credit card charges and refunds.
  • Sales Tax Management: Assist with the management of sales tax exemption certificates.
  • Invoice Adjustment: Adjusting the invoices and credit memos.
  • Intercompany Transactions: Processing the global intercompany cash application.
  • Funds Posting Accuracy: Complete accurate posting of funds, to the correct patient, date of service and procedure.
  • Aging Reports Management: Work assigned aging reports to ensure timely payments, and fee schedule disputes are identified and ensure cash posting is accurate.
  • Claim Denial Analysis: Identify claim denials and payment trends on claims, and work with the fee schedule team to ensure accurate fees are on file.
  • Accuracy Maintenance: Maintain at least 99% accuracy on posting of funds.
  • End-of-Month Reconciliation: All payments must be properly applied to patient accounts before the close of business on the last day of the month.
  • Patient Account Support: Answer patient phone calls received via the Corporate Collections phone line, audit accounts, answer questions, and process and apply payments to patient accounts.

7. Cash Application Specialist Overview

  • Payment Reconciliation: Reconciliation of checks, ACH and credit card payments received
  • Invoice Verification: Verify each invoice paid on remittance advice compared to account status
  • Customer Contact: Contact customers that do not include remittance advice
  • Deposit Posting: Determine which bank account to post to and accurately post each deposit for the correct platform
  • Balance Correction: Identify and correct any out-of-balance situations within a deposit
  • Document Management: Scan and email to the appropriate AR manager all backups for any short or underpayments on the account
  • Payment Notification: Advise the AR Manager when a lump sum payment has been issued
  • Document Distribution: Push additional documents received with payment to the appropriate personnel
  • Payment Assistance: Assist Collection Specialists with processing credit card payments
  • ACH Matching: Pull ACH remittances from public folders and match them to payments for posting
  • Record Management: Box up all deposits from file cabinet before month end, determine what is shredded and what is sent to permanent storage on a rotating schedule

8. Cash Application Specialist Details and Accountabilities

  • Payment Application: Apply payments accurately to the customers’ account and on time
  • Payment Correction: Research and correct payment misapplication issues when they arise
  • Payment Processing: Process all unapplied and unidentified payments daily
  • Communication: Communicate any differences that result in overpayments to the Accounting Manager and Credit and Collections team
  • Cash Reconciliation: Research and reconcile cash application issues
  • Performance Improvement Advice: Advise management on actions needed to improve performance and processes
  • Cross-Functional Collaboration: Collaborate across functions to promote best practices as they relate to cash application processes
  • Check Deposit Management: Deposit received checks daily through the remote check deposit system
  • Credit Card Processing: Process credit card payments, and manage SLEs
  • Payment Application in Software: Apply check, ACH, and credit card payments into accounting software with high accuracy and efficiency
  • Payment Inquiry Administration: Research and administer payment application inquiries

9. Cash Application Specialist Tasks

  • Cash Management: Accounts daily for all lockbox, cash, and credit card receipts from customers and miscellaneous sources.
  • Account Reconciliation: Reconciles the accounts receivable/cash input to cash deposits in the bank.
  • Cash Application: Ensures daily cash application to customer accounts, allowing correct discounts.
  • Customer Fund Management: Works with customers to ensure proper application of funds.
  • Reporting: Submits cash transaction reports electronically at the end of each business day.
  • Discrepancy Resolution: Resolves account discrepancies with customers, involving customer service personnel, and researches account history.
  • NSF Recovery: Alerts Controller and Supervisor of any non-sufficient fund checks and begins the recovery process.
  • Invoicing and Collections: Invoicing for bank charges and sending collection notices to the customer.
  • Billing Management: Ensures that invoices, statements, and late notices are mailed on time.
  • Communication: Communicate difficulties and invoicing errors to the Controller and Supervisor.
  • Refund Processing: Processes customer refunds of credit balance.

10. Cash Application Specialist Roles

  • Issue Resolution: Analyze automated cash application output and identify issues with processing and resolve any issues identified.
  • Payment Processing: Apply customer’s payments to invoices, analyzing payment differences and creating short payments or overpayments.
  • Reconciliation: Perform Accounts Receivable reconciliation and analysis and correct entries when errors are identified.
  • Process Optimization: Identify opportunities to enhance or optimize processes or utilization of software.
  • Compliance Management: Take responsibility for ensuring policy/procedure compliance.
  • Billing Management: Process military billings, resolve military deductions, and reconcile military distributors’ accounts receivable.
  • Internal Collaboration: Interact with other internal customers, including IT, Internal Audit, Sales, Customer Service Area, and Finance Department.
  • External and Internal Interaction: Interact externally with bank staff and third-party software vendors and/or internally with IT.
  • Discrepancy Resolution: Identify and resolve day-to-day issues regarding the processing or timing of electronically processed cash receipt files and related discrepancies.

11. Cash Application Specialist Additional Details

  • Cash Management: Perform day-to-day operation of cash application, cash collections, and other accounts receivable duties timely and accurately.
  • Payment Processing: Apply customer payments by recording cash, checks, wires, ACH, and credit card transactions.
  • Dispute Resolution: Resolve customer issues to minimize payment disputes and AR adjustments.
  • Discrepancy Analysis: Research and resolve discrepancies between purchase agreements and appropriate accounting supporting records.
  • Problem Identification: Identify problems that may affect the accounts receivable process and take appropriate action including manager notification.
  • Cross-functional Collaboration: Work with cross-functional departments to obtain appropriate documentation for collection and cash application efforts.
  • Account Verification: Verify the validity of account discrepancies by obtaining and investigating information from sales, trade promotions, customer service departments, and customers.
  • Deduction Management: Resolve valid or authorized deductions by entering corrections to customer accounts.
  • Chargeback Negotiation: Take responsibility for research and negotiate chargeback claims.

12. Cash Application Specialist Essential Functions

  • Innovation Encouragement: Encourage and assist the team with ideas and/or innovations to improve processes for quicker, more accurate application of funds received.
  • Collaboration: Collaborate with internal teams and all levels of management to resolve issues.
  • Automation Development: Work with internal and external consultants to build reliable cash application automation.
  • Reporting Assistance: Assist Supervisor with daily cash reconciliation reporting.
  • Compliance and Reporting: Provide SOX documentation and assist in audits and Monthly Reporting.
  • Account Adjustment Processing: Processes approved account adjustments including bad debt write-offs and service charge adjustments.
  • Month-End Reporting: Performs month-end reporting to Controller and Supervisor, including EOP recap, Invoice count, CC Transaction summary and other reports.
  • Account Review: Periodically reviews accounts status, making collection calls and sending payment reminders.
  • Status Updating: Updates system as to account status and notifies company personnel.
  • Compliance Enforcement: Works with Supervisor to ensure compliance with established credit and collection procedures.

13. Cash Application Specialist Role Purpose

  • Payment Processing: Process credit card payments from customers.
  • Chargeback Initiation: Initiate action on Customer shortpays by creating Chargebacks to assist in resolving issues.
  • Communication Skills: Communicate with collectors to resolve inadequate remittance advice issues (cash on account).
  • Customer Account Management: Communicate to Customer Standard Maintenance changes in customer bank account info and customer payment relationships.
  • Reporting Skills: Daily, Weekly, and Monthly reporting of various cash application activities and issues.
  • Reconciliation Skills: Reconcile discounts, cash on account, and various other reports.
  • Continuous Improvement Participation: Participate in continuous improvement initiatives, as well as the completion of special projects.
  • Payment Processing: Process customer payments received from various payment sources and prepare necessary cash reports daily.
  • Reconciliation Skills: Complete daily, weekly, and monthly reconciliations for all cash receipts to the Accounts Receivable and General Ledger systems.
  • Problem Resolution: Research and resolve customer payment issues and process any necessary posting adjustments on time.
  • Follow-up Skills: Follow up with the customer and or business team member.
  • Relationship Management: Establish and maintain effective working relationships with business teams across the organization along with Home Office departments.
  • Data Management: Maintain cash applications data according to established records retention policy.

14. Cash Application Specialist General Responsibilities

  • Bank Reconciliation: Daily reconciliation of multiple bank accounts
  • Payment Processing: Receiving and posting customer payments
  • Variance Analysis and Credit Card Reconciliation: Research any cash variances daily, and credit card reconciliation
  • Customer Account Research: Assist the Billing Team with customer account research
  • Third-Party Payment Posting: Research and post 3rd party payments
  • Accounts Payable Coordination: Work with Accounts Payable to ensure that everything is being paid on time
  • Cross-Training: Cross train with the other roles within the Administrative/Finance team
  • Cash Transactions Processing: Processes and applies all daily cash receipts and other cash transactions, and some A/R adjustments across multiple platforms.
  • Check Processing: Responsible for daily scanning, applying and depositing manual checks not processed through the lockbox.
  • Credit Card Processing: Take responsibility for the process of credit card receipts
  • Payment Discrepancy Research: Research payment discrepancies to determine the correct posting to accounts and work with the invoicing team to resolve discrepancies.
  • Invoicing Coordination: Work with Invoicing to determine appropriate applications and help troubleshoot variances.
  • Productivity Enhancement: Focus on attaining daily productivity standards, recommending new approaches for enhancing performance and productivity

15. Cash Application Specialist Roles and Responsibilities

  • Customer Service: Act on all calls and email requests from advertising customers to pay bills via credit card.
  • Financial Recording: Post all cash received via credit card to front-end advertising systems.
  • Transaction Reconciliation: Assist in reconciling credit card transactions and settlements on a daily/monthly basis.
  • Check Processing: Process and deposit any live checks for GL items that may be escalated by BPO provider, Genpact.
  • Support Coordination: Field inbound calls/emails from Credit and GL Teams, and provide necessary backup documentation.
  • Payment Processing: Process/apply all payments received daily in the lockbox via check, wire, and credit card.
  • Payment Organization: Organize the payments received to facilitate timely deposits and posting to customer accounts.
  • Account Adjustment: Generate debit and/or credit memos for any invoice discrepancies.
  • Payment Verification: Perform daily reconciliation of payments posted against banking information to ensure accuracy.
  • Account Reconciliations: Perform payment reconciliations within the customer’s account.