ILMO Products: Streamlining Cash Application and Bank Reconciliation with TIMS

Prior to implementing Cashbook, ILMO Products relied on multiple software programs to track cash and reconcile bank transactions. Validating information across these systems was a significant challenge, often requiring the company to accept variances between its internal records and bank balances. The fragmented process increased complexity and limited visibility into cash activity.

From a cash application perspective, the high volume of transactions required multiple employees to manually apply payments within the primary ERP system, resulting in a heavily paper-based process. Identifying the correct customer account for payment application was often difficult when invoice or account numbers were not provided and only a payment amount was available. As data had to be entered into multiple systems, the risk of errors increased, and redundant data entry led to additional time loss and inefficiencies. Overall, the cash application and bank reconciliation processes required the involvement of five employees, creating a resource-intensive workflow that was difficult to manage and scale.

ILMO Products implemented Cashbook’s Cash Application and Bank Reconciliation solution to streamline its cash management processes and eliminate the inefficiencies associated with multiple systems. By integrating Cashbook directly with its ERP system, ILMO now relies on a single, connected process for tracking and managing cash activity. This has significantly reduced the number of data entry points, minimizing manual effort and lowering the potential for errors.

The implementation has also delivered measurable operational improvements. The number of employees required to manage cash application and bank reconciliation has decreased from five to three, while the company is now able to match ERP cash transactions directly to bank transactions without requiring variances between records.

For cash application, ILMO utilizes both lockbox and ACH processes. Approximately 95% of lockbox payments are applied automatically, greatly reducing manual intervention. For ACH payments, remitter information is now available in one place, eliminating the need to work from paper-based documentation and improving visibility into payment details.

Bank reconciliation has also become more efficient, with approximately 80% of transactions being automatically matched. Although still in its first year of using Cashbook, ILMO continues to identify and develop additional internal efficiencies, further enhancing its cash application and reconciliation processes.