Only 48% of Construction Firms Use Automated Accounts Receivable Processes

A growing number of firms have moved to automated accounts receivable (AR) processes, but the adoption rate varies by industry sector. For example, only 48% of construction firms are using automated AR processes, according to “Innovating B2B Payments,” a PYMNTS and i2c collaboration.

Get the report: Innovating B2B Payments

That percentage lags those of four other industry sectors included in the report, with 71% of energy firms, 68% of advertising firms, 65% of technology firms and 56% of healthcare firms reporting they had adopted such tools.

Implementing artificial intelligence (AI) or related technologies such as machine learning (ML) could provide various benefits to businesses, including allowing them to automatically match invoices to their correct payments as well as making it easier for them to track incoming payments.

Embracing Digital-First Approaches

An earlier PYMNTS study found that among firms that had integrated automation or other emerging technologies, 87% reported that they had improved their AR payment processing speed, and 62% said they had improved their days sales outstanding (DSO).

These AR benefits from emerging technology could prove valuable to commercial construction, which has the longest DSO of any mature industry — 83 days.

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Businesses that are adopting these technologies are attempting to keep up with a world in which staying competitive requires embracing digital-first approaches to not just conducting day-to-day business but also sending and receiving payments. They see they need to offer and support quick, innovative B2B payment experiences that go beyond paper-based payment and invoicing processes, and they will need the proper tools to do so.

Partnering With Third-Party Payment Processors

Examining the role of their payments processors and how they may be tapping technologies such as AI and ML to reduce frictions or boost the speed of incoming and outgoing funds could motivate companies to strive for faster B2B payment automation.

AI can also help firms better analyze and sort payments data — eliminating cumbersome manual payment processes — as well as enhance their payment processing overall. Application programming interfaces (APIs) are also gaining traction as a key technology that will make digital payment processes swifter and more efficient.

Modernizing legacy infrastructure and manual payment processes via APIs and AI can allow businesses to offer innovative payment experiences. For example, using virtual cards for B2B payments can add security and speed payments.

Combining automation and virtual cards could help firms bring their B2B payments up to speeds mirroring those of the B2C space, and this advancement is becoming critical as companies leave their manual processes behind.

One way in which businesses may be able to evolve with the swiftness they need to stay competitive is by partnering with third-party processors who have already integrated such tools and payment methods, enabling firms to more easily manage the transition to digital payments.