The research covers current AR trends, challenges, priorities, systems, tools, and modernisation efforts and is summarised in a white paper named ‘The State of Accounts Receivable: The Journey to Modernize’. It shows a perception gap among AR practitioners regarding to what extent their processes are modernised. When asked about the tools used to perform their work, most AR teams believe they are up-to-date and efficient, using words such as reliable, innovative, and efficient to describe their existing AR systems and processes. Further, 86% rate their department as very or somewhat modernised.
However, there are some contrary indicators suggesting AR departments are not as modernised as they perceive that over 40% of AR departments do not offer self-service capabilities, over 50% do not have real-time integrations with their ERP systems, nor do they have automated integration with their customers’ accounts payable (AP) procure-to-pay platforms. Moreover, 60% do not have most of their payments or invoices as digital, with nearly 30% of payments still being cash and paper check.
Only 25% of executives see their AR departments as a strategic partner in the business, and only 18% see them as an innovative finance function. Besides, 60% see their current AR systems and processes as frustrating, driven by lack of integrations between processes, too many manual tasks, insufficient self-service capabilities for customers, inefficient processes/workflows, poor user experiences for AR teams, outdated and slow technology, human error, and high operating costs.
AR teams report having to interact with an average of 11-20 AP procure-to-pay platforms and be proficient with 11-15 different brands, slowing AR processes.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now