Research shows a perception gap regarding accounts receivable modernisation

Wednesday 14 July 2021 11:09 CET | News

Billtrust, a B2B accounts receivable (AR) automation and integrated payments provider, has released the results of a research which aims to understand the current state of the US accounts receivable industry.

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self-service capabilities for customers, inefficient processes/workflows, poor user experiences for AR teams, outdated and slow technology, human error, and high operating costs.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. 

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Keywords: research, accounts payable, ERP
Categories: Banking & Fintech | Payments General
Countries: United States
This article is part of category

Banking & Fintech