Do's and Don'ts of Cash Application

The concept of cash application — the process by which companies match cash coming in with the amounts due from their customers — is straightforward enough. When the check comes in, cross the invoice off as paid. All you need is a bank account and a giant red marker, right? Of course it's never that simple: Amounts don't match, invoices from the same customer pile up, inventory gets damaged and people make mistakes — oh yeah, and the electronic age is here, so change all your systems to…