AP & AR
Cash application
Finbryn matches every incoming customer payment to the correct invoice for US businesses, flags partial payments and unidentified deposits instead of guessing, and separates processor fees from the gross amount so your accounts receivable reflects what is actually still owed.
Aged receivables
Illustrative client · August 2026
USD
| Customer | Current | 1-30 | 61+ | |
|---|---|---|---|---|
| Customer A | 18,400 | - | - | - |
| Customer B | 9,250 | 4,100 | - | - |
| Customer C | - | 6,780 | 2,200 | - |
| Customer D | 12,600 | - | - | - |
| Customer E | - | - | - | 1,450 |
| Total | 40,250 | 10,880 | 2,200 | 1,450 |
Illustrative. An example of the document, not a client's figures.
Why cash application is its own step
A payment landing in your bank account does not tell you which invoice it settles, especially when a customer pays several invoices at once or pays a slightly different amount than billed. Cash application is the step that turns a bank deposit into a specific reduction of specific invoices.
How we handle the common cases
A payment that matches an invoice exactly gets applied and closed out. A partial payment gets applied against the oldest or the customer's specified invoice, per your instruction, and the remaining balance stays open. An overpayment gets flagged, since applying it as a credit or refunding it is your decision, not ours to assume.
Payment processor fees
When a customer pays through Stripe, PayPal or a card processor, the amount that hits your bank account is usually net of a processing fee. We separate the gross invoice amount from the fee so your revenue and your expense are recorded correctly, instead of understating revenue by the fee amount.
Unidentified deposits
A deposit with no clear invoice or customer attached goes on a short list rather than getting parked in a suspense account and forgotten. We ask you or check with the bank before applying it, so it does not sit there distorting your AR balance for months.
Feeding into aging and close
Accurate cash application is what makes the AR aging report trustworthy. An invoice marked paid that was not, or one still marked open that was actually settled, throws off every collections decision built on top of it.
Questions
Frequently asked questions: Cash application
What if a customer pays by check and does not include a remittance advice?
We match it against open invoices for that customer as closely as we can and flag it if more than one invoice could reasonably match, rather than guessing.
Do you handle payments in multiple currencies?
Yes, where your accounting software and bank feed support it, applying the correct exchange rate at the time of payment.
How quickly are payments applied after they land in the bank?
As part of the weekly reconciliation cycle, so open balances stay current between monthly closes rather than only at month end.
What does cash application actually include, month to month?
Cash application covers incoming payments matched to the invoice or invoices they settle, along with partial payments and overpayments flagged for your instruction. The work runs inside QuickBooks Online, Xero, NetSuite or Bill.com, the file stays under your own subscription, and a senior principal reviews the output before it reaches you each period.
What access do you need to start cash application?
View or edit access to QuickBooks Online, Xero, NetSuite or Bill.com is enough to begin; nothing about your existing subscription or login changes on our side. Any additional access needed for a specific deliverable, such as a bank portal or receipt inbox, is agreed with you first, and the scope is set out in your engagement letter.
What happens when a customer pays the wrong amount?
We hold it as an open item, note what does not match, and ask you how to apply it rather than guessing.
Do you handle payments across multiple bank accounts or processors?
Yes. Deposits from Stripe, PayPal, ACH and wire all get matched back to invoices regardless of which account they land in.
What is included in cash application?
Cash application covers incoming payments matched to the invoice or invoices they settle and partial payments and overpayments flagged for your instruction. The exact scope is agreed and set out in writing before work starts, so you know precisely what is and is not covered before the first deliverable arrives.
How is cash application priced?
Pricing for cash application depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
Related services
- AP & ARAged receivables reportAn aged receivables report is prepared each month, showing what customers owe and how overdue it is, so you can see collection risk before it becomes a cash problem.
- AP & ARInvoicingCustomer invoices are created and sent on the schedule your contracts call for, with terms, quantities and pricing checked against the underlying agreement before anything goes out.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.