As organizations across industries struggle with delayed payments and disruptions to cash flow, accounts receivable (AR) teams are now seen as navigators amid an economic storm. More than 8 in 10 businesses believe their AR teams have become more crucial in recent months — yet the resources at these teams’ disposal remain limited.
The B2B space has been slow to embrace technology, but the undeniable benefits of a digital-first strategy make it impossible to continue postponing adoption. Nearly three-quarters of adopters of AR automation reported seeing faster payments, resulting in better cash flow and customer relationships. Supporting AR teams with modern tools and training will provide them with the equipment necessary to chart a successful course through the current storm.
The “B2B and Digital Payments Tracker®” examines the growing need to automate AR and why the ongoing problem of late payments may be just the wake-up call organizations need to prioritize B2B payments modernization.
Evidence that AR needs support and prioritization continues to mount. A survey found that AR teams are straining to stay above water in collecting invoice payments, with many falling weeks or even months behind schedule. The survey of 300 CFOs determined that 23% of AR teams are up to date on collections, while a nearly equal share — 22% — are months behind.
A study of 500 small business owners across the United States showed the current macroeconomic climate presents severe challenges and makes cash flow a top priority for 85% of these business owners. According to the study, inflation has had an extreme or high impact on cash flow for 48% of small business owners in the past six months, with 45% saying they have had to forgo their own paychecks and 22% saying they have been unable to pay bills.
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The current economic and business environment is pushing companies’ buttons in more ways than one. According to a study by Billtrust, the biggest influences on businesses right now are inflation pressure, the need for financial resilience and the increasing unreliability of supply chains.
To get the Insider POV, we spoke with Murray Sharp, vice president of partnerships, channel sales and business development at Billtrust, on why these forces are driving more companies to the inescapable conclusion that AR automation is do-or-die.
With more than 8 in 10 companies still seeing delayed payments rise in 2023, global economic concerns remain high. At the heart of effective B2B relationships, however, is AR teams’ ability to collaborate with customers’ accounts payable (AP) teams to speed invoice processing and payment. Cloud-based collaborative AR portals offer communication in real time to negotiate invoice disputes at the line-item level within the application.
To learn why companies can no longer afford to postpone automating AR, read the Tracker’s PYMNTS Intelligence.
The “B2B and Digital Payments Tracker®,” a collaboration with American Express, examines the growing need to automate AR and why the ongoing problem of late payments may be just the wake-up call organizations need to prioritize B2B payments modernization.