Career Development

What Does a Cash Application Analyst Do?

Find out what a cash application analyst does, how to get this job, and what it takes to succeed as a cash application analyst.

A cash application analyst is responsible for analyzing and evaluating the financial health of an organization. They look at a variety of data points, including income statements, balance sheets, cash flow statements, etc., to determine whether or not a company has enough money on hand to pay its debts as they come due.

Cash Application Analyst Job Duties

A cash application analyst typically has a wide range of responsibilities, which can include:

  • Reviewing and analyzing financial statements to ensure accounting principles have been applied correctly
  • Preparing reports on cash flow projections, trends in income and expenses, and forecasts of future cash flow needs
  • Preparing day-to-day bank deposits and making sure that funds are available to meet daily obligations
  • Evaluating customer creditworthiness to determine if they should be approved for loans or other types of financing
  • Reviewing loan applications to determine if they meet lending standards
  • Resolving customer service issues, such as providing information on interest rates or payment plans
  • Interpreting complex financial documents such as tax laws, accounting principles, or corporate regulations
  • Creating models to forecast the impact of economic changes on future cash flow
  • Reviewing financial statements to identify errors or irregularities in accounting principles to determine if they need to be corrected

Cash Application Analyst Salary & Outlook

Cash application analysts’ salaries vary depending on their level of education, years of experience, and the company size and location. They may also earn additional compensation in the form of bonuses.

  • Median Annual Salary: $62,500 ($30.05/hour)
  • Top 10% Annual Salary: $122,000 ($58.65/hour)

The employment of application analysts is expected to grow much faster than average over the next decade.

Demand for these workers will stem from the continued growth of e-commerce and mobile applications. Application analysts will be needed to ensure that websites are easy to navigate and that mobile apps work properly.

Cash Application Analyst Job Requirements

A cash application analyst typically needs to have the following qualifications:

Education: Cash application analysts are typically required to have a bachelor’s degree in accounting, finance or a related field. These programs teach students the basics of accounting and finance, including topics like financial accounting, business law, economics, business communication and business mathematics.

Training & Experience: Cash application analysts typically receive on-the-job training. This training may last for a few weeks to a few months and may include shadowing current cash application analysts and performing duties under supervision until they are comfortable enough to complete tasks on their own.

Certifications & Licenses: Certifications can provide professionals with additional knowledge that can help them perform their jobs more efficiently, satisfactorily and successfully. Cash application analysts can earn certifications to gain additional knowledge of their responsibilities, test their skills and further advance their careers.

Cash Application Analyst Skills

Cash application analysts need the following skills in order to be successful:

Accounting skills: Cash application analysts use accounting skills to record and track financial data. They may also use accounting skills to prepare financial reports and forecasts. Accounting skills can include knowledge of bookkeeping, budgeting and other financial practices.

Communication skills: Communication skills are essential for cash application analysts. They often work with other members of a team, and their ability to communicate effectively can help them collaborate and share information with their colleagues. They also communicate with customers and clients, so they need to be able to explain complex financial concepts in a way that’s easy to understand.

Data analysis skills: Data analysis is the process of examining and interpreting data. Data analysts use their data analysis skills to examine large amounts of data and find patterns, trends and other useful information. Effective data analysis requires attention to detail, logical thinking and the ability to interpret data accurately.

Problem-solving skills: Cash application analysts use their problem-solving skills to find solutions to technical issues, resolve customer concerns and troubleshoot software. They also use their problem-solving skills to find solutions to problems that arise during the development of new software.

Attention to detail: Cash application analysts must have excellent attention to detail to ensure they enter all the correct information into the computer system correctly. They should also check their work to ensure they haven’t made any errors. This ensures the company’s financial records are accurate and the company isn’t overpaying or underpaying any employees.

Cash Application Analyst Work Environment

The Cash Application Analyst is responsible for the daily application of cash receipts to the correct customer account and invoice. This position works in the Accounting Department and reports to the Cash Application Manager. The Cash Application Analyst works Monday through Friday from 8:00 am to 5:00 pm. There is potential for overtime during month-end close. The Cash Application Analyst must be able to sit for long periods of time and have excellent data entry skills.

Cash Application Analyst Trends

Here are three trends influencing how cash application analysts work. Cash application analysts will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Need for More Data-Driven Decisions

The need for more data-driven decisions is becoming increasingly important in business, as it allows companies to make better decisions based on facts rather than assumptions. This trend is having a major impact on the role of the cash application analyst, who is now responsible for collecting and analyzing data that can be used to make better decisions about how to allocate company resources.

By understanding how to use data to make better decisions, cash application analysts can help their companies become more efficient and successful. They can also use this knowledge to develop new products and services that are better suited to customer needs.

More Focus on Cybersecurity

As businesses become more reliant on technology, the need for cybersecurity professionals will continue to grow. This is because cyberattacks are becoming more sophisticated and difficult to detect, which means that businesses need professionals who can identify and prevent them.

Cash application analysts are in a unique position to take advantage of this trend, as they are responsible for handling sensitive financial information. By developing expertise in cybersecurity, they can help protect businesses from potential attacks.

Greater Use of Cloud Computing

Cloud computing is becoming an increasingly popular option for businesses looking to save money on IT costs. This trend is likely to continue in the future, as cloud computing offers many benefits, such as reduced hardware costs and easier software updates.

As cloud computing becomes more popular, cash application analysts will need to learn how to manage cloud-based systems. This includes installing and maintaining cloud-based applications, as well as ensuring that data is secure in the cloud.

How to Become a Cash Application Analyst

A career as a cash application analyst can be both rewarding and lucrative. It’s important to start off on the right foot by getting the necessary training and certifications. You should also build up your experience by working in different departments of a bank or credit union. This will give you a better understanding of how the entire operation works.

As you progress in your career, you may want to specialize in a certain area such as collections, lending, or operations. This will allow you to develop new skills and become an expert in that field. You can also move up the ladder by becoming a manager or director.

Related: How to Write a Cash Application Analyst Resume

Advancement Prospects

Advancement prospects for cash application analysts are good. With experience, analysts may move into management positions or become consultants. Some may also start their own businesses.

Cash Application Analyst Job Description Example

The Cash Application Analyst is responsible for the efficient and accurate application of cash receipts to the correct customer invoices in the accounting system. This includes daily bank deposits, customer payments, and other miscellaneous cash receipts. The Cash Application Analyst will also reconcile the Accounts Receivable sub-ledger to the General Ledger on a monthly basis.

The ideal candidate will have a strong attention to detail, excellent communication and organizational skills, and the ability to work independently. He or she will also have experience with cash application and/or Accounts Receivable in an accounting or finance role.

Duties & Responsibilities

  • Process daily cash receipts in a timely and efficient manner
  • Research and apply unapplied payments
  • Reconcile processed work by verifying entries and comparing system reports to balances
  • Chargebacks and refunds
  • Assist with month end close
  • Ad-hoc projects as needed
  • Maintain documentation of cash application procedures
  • Monitor incoming email for payment related inquiries
  • Respond to customer inquiries in a professional and timely manner
  • Work closely with other departments to resolve discrepancies
  • Update customers on the status of their payments
  • Train new employees on cash application procedures

Required Skills and Qualifications

  • Bachelor’s degree in accounting, finance, business administration, or related field
  • 3-5 years of experience in cash application, accounts receivable, or similar role
  • Experience with ERP systems, SAP preferred
  • Intermediate to advanced Microsoft Excel skills
  • Excellent analytical and problem-solving skills
  • Strong attention to detail

Preferred Skills and Qualifications

  • MBA or other advanced degree
  • Certified Public Accountant (CPA) designation
  • Experience with data visualization tools, Tableau preferred
  • Project management experience

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