A new Datos Insight study finds that 82% of businesses not currently using automated accounts receivable (AR) solutions are interested in adopting them. The study, “Transforming Accounts Receivable: ERP Systems Aren’t Enough,” also concludes that large and midsize corporations need more than an enterprise resource planning (ERP) system and their bank’s treasury management portal to properly manage AR and take advantage of increased customer satisfaction and improved cash flow.
Commissioned by Billtrust, a B2B order-to-cash and digital payments market leader, the study indicates businesses must consider the multiple benefits of a comprehensive AR automation solution beyond ERP capabilities, including increased operational efficiency, improved accuracy, accelerated cash flow, and enhanced customer experience through features like self-service portals and multiple payment options.
“Many businesses are using a combination of ERP and bank treasury management systems to send electronic invoices and receive payments,” said Robin LoGiudice, Strategic Advisor, Commercial Banking and Payments, Datos Insights. “However, these systems lack the capabilities necessary to automate and manage AR tasks. While there is value in having an ERP integrated with your bank for accounting and banking activities, neither is well suited to handle complex AR tasks.”
Key insights from the report include:
- 75% of respondents who have not yet implemented AR automation plan to do so within two years, recognizing the need to invest in new technology to streamline AR operations.
- Payment settlement speed (46%), real-time visibility of payments transactions (44%), and integrating payments data into ERP systems (42%) were identified as the biggest gaps in organizations’ payments strategy/processes.
- 76% of businesses have allocated moderate or significant budgets for improving payment processing.
- 52% of businesses cited operational and process changes as the biggest hurdles impeding change followed by cost (45%) and IT resource demands (41%).
“Finance teams are often rightfully cautious about implementing new technologies that may introduce uncertainty or instability into their processes,” said Sunil Rajasekar, Billtrust CEO. “This new research validates that the time is now to embrace comprehensive AR automation solutions that outperform current capabilities by helping teams work more efficiently, get paid faster, and provide a better buyer experience.”
Methodology
Datos Insights is a leading global provider of insights, data, and advisory services to the financial services, insurance, and retail technology industries. This report is based on a Datos Insights survey of 1,037 midsize and large organizations with revenue over US$20 million per year conducted in Q3 2024. The report also leverages past Datos Insights research, extensive conversations with industry experts and practitioners.
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