Developing a custom automated payment processing system
Being prepared for the future is essential in order to grow as a business in the ever-evolving energy transition. Part of this is ensuring that the systems in use can cope with (un)expected changing demands. This is especially true for financial operations and systems.
Managing incoming payments manually can be a time-consuming and error-prone process of matching, checking and editing. So how did this Energy Solutions Provider go from relying on manual processes to an automated and accurate matching system?
Interdependencies between financial workflows
One of the basic requirements for financial systems is to correctly match payments to the right customers or invoices. Without proper integration of banking transactions and financial records it could prove difficult to ensure accurate financial data. Manually matching payments is highly inefficient, time consuming and could result in faulty financial records.
From ideation to realisation
To speed up financial reporting for this Dutch company, operational efficiency needed to be increased and manual intervention in payment processing decreased. Magnus Energy’s subsidiairy Ciratum was asked to automate the payment processing workflow to increase efficiency and minimize errors. The solution was to develop a custom payment processing system that automatically matches transactions to invoices ensuring seamless integration with the existing invoicing system.
Such a project is complex and asks for specific skills and knowledge of financial and business process automation, software development and system integration. This is why our subsidiary Ciratum was asked to support the project with their expertise on;
- Custom Software Development
- Building a Windows application in C# that automatically reads bank transaction files.
- Automated Matching System
- Using regular expressions to recognize customer and invoice numbers within transaction descriptions.
- Developing a logic-driven algorithm to improve accuracy in payment matching.
- API Integration
- Ensuring seamless processing of payments by integrating the solution with the financial system via an API connection.
By taking on the project with an end-to-end approach, our experts guaranteed that the new tool fit seamlessly into existing workflows while significantly reducing manual effort.
A Tailored, Automated SolutionThe end-to-end approach ensured that the new tool fit seamlessly into existing workflows while significantly reducing manual effort.
The end-to-end approach ensured that the new tool fit seamlessly into existing workflows while significantly reducing manual effort.
Once the system was built and the integration with the invoicing system was implemented, this resulted in:
- Reduced manual workload, allowing employees to focus on higher-value task and a significant reduction in processing errors and manual interventions.
- Improved accuracy in financial reporting with a correct automated matching rate of 92%.
- Faster payment processing, leading to improved financial operations.
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