With automation being a top priority for companies, you may want to do a pulse check on your A/R team’s modernization progress.
The reason: Some A/R departments may think they’re in a better place with digitization than they are in actuality. That’s the word from Billtrust’s new report, The State of Accounts Receivable: The Journey to Modernize.
The report found 86% of the A/R pros surveyed view their department as somewhat or very modernized. And they used words like “innovative” and “efficient” when talking about their systems and processes.
But other statistics featured in the report reveal that this may be more of a hopeful perception than reality. The research showed:
- Over 40% of A/R teams don’t provide self-service capabilities.
- More than 50% don’t have real-time integration with their ERP systems or automated integration with their customers’ A/P or Procure-to-Pay platforms.
- Over 60% say most of their invoices or payments aren’t digital.
Time to reevaluate
When considering modernization, it’s understandable that A/R teams could have misconceptions about how efficient they are.
Maybe teams with “newer tech” think that alone makes their processes modernized – when in reality, the tech’s not being optimized. Or perhaps they have a bunch of cutting-edge tools and apps, but they aren’t properly connected or integrated. (It’s worth noting that the report asked A/R pros to name their biggest pain points with their systems and tools. And the top answer, cited by 27% of respondents, was “lack of integration between our processes, internal tools and external tools/dashboards.”)
Overall, this new research suggests it’d be smart for CFOs to check in with A/R on its modernization progress and plans.
How automated does your team think they are – and does that line up with reality? Are your systems integrated and workflows streamlined? What more could you do to digitize invoicing and payments? Considering these and similar questions will help you ensure your A/R team’s modernization journey is on the right track.