01/31/2022

Reduce Late Payments by Automating Your Accounts Receivable

There are benefits to incorporating automated technology

It is no secret that automating B2B payments and managing them via an ERP system can improve the collections process, reduce the day sales outstanding (DSO) and streamline operations. According to a PYMNTS study, 49 percent of firms that have adopted automated accounts receivable (AR) processes report lower overall delinquency rates, 62% report reduced DSO and 72 percent report they have saved operational costs.

These join the even more common benefits of incorporating automated AR technology. Among these are faster processing speed (cited by 87 percent of those who have adopted this technology), improved team efficiency (79 percent) and a better customer experience (75 percent).

Late Payments Weigh on the Bottom Line

Many B2B firms have recognized just how detrimental late payments can be to their operations, prompting them to seek out digital solutions to free up more cash. A recent report found that 80% of B2B firms believe that late payments stemming from inefficient AR operations are threatening their businesses. It also found that 93 percent of firms must contend with negative effects because of their AR approaches and that 37 percent say their AR practices are preventing them from accurately predicting cash flow.

Please select this link to read the complete article from OSAP Member Infintech.