New Study Shows Accounts Receivable Modernization is More Perception Than Reality
July 12 2021 - 8:00AM
Business Wire
Billtrust-Commissioned Research Examines
Current State of AR with Integrated B2B Payments, Identifies Gaps
Suggesting AR Teams’ Processes are Not as Modernized as They
Perceive
Billtrust (NASDAQ: BTRS), a B2B accounts receivable automation
and integrated payments leader, released the results of an in-depth
qualitative and quantitative research study to better understand
the current state of the U.S. accounts receivable (AR) industry.
The research covers current AR trends, challenges, priorities,
systems, tools and modernization efforts and is summarized in a new
white paper, “The State of Accounts Receivable: The Journey to
Modernize,” available at Billtrust.com.
Among the many insights, the research showed a significant
perception gap among AR practitioners regarding to what extent
their processes are modernized. When asked about the tools used to
perform their work, most AR teams believe they are up-to-date and
efficient, using words such as reliable, innovative and efficient
to describe their existing AR systems and processes. Further, 86%
rate their department as very or somewhat modernized. There are,
however, numerous contrary indicators suggesting AR departments are
not as modernized as they perceive:
- Over 40% of AR departments do not offer self-service
capabilities.
- Over 50% do not have real-time integrations with their ERP
systems, nor do they have automated integration with their
customers’ accounts payable (AP) procure-to-pay platforms.
- Over 60% do not have a majority of their payments or invoices
as digital, with nearly 30% of payments still being cash and paper
check.
- Only 25% of executives see their AR departments as a strategic
partner in the business, and only 18% see them as an innovative
finance function.
- 60% see their current AR systems and processes as frustrating,
driven by lack of integrations between processes, too many manual
tasks, insufficient self-service capabilities for customers,
inefficient processes/workflows, poor user experiences for AR
teams, outdated and slow technology, human error and high operating
costs.
- AR teams report having to interact with an average of 11-20 AP
procure-to-pay platforms and be proficient with 11-15 different
brands, slowing AR processes.
“Clearly, accounts receivable professionals’ perception of
modern processes is not aligned with what is considered
state-of-the-art,” said Steve Pinado, Billtrust President. “The
study does indicate a small percentage of strategic, innovative and
highly modernized AR teams, and our hope is this research draws
attention to what can be done to maximize efficiency and leverage
the most advanced cash flow acceleration and integrated payments
capabilities available. Because benchmarking and self-assessment is
so critical to organizational improvement, these findings are
important for finance leaders in helping them evaluate their
processes and make the connection between strong accounts
receivable capabilities, productivity and world-class customer
experiences.”
The study also includes in-depth insights on:
- How AR teams allocate their time.
- Most often-used AR systems and tools.
- AR teams’ biggest pain points and frustrations.
- How AR teams meet the challenges of increasing AP
procure-to-pay platform usage.
- The pandemic’s impact on AR.
- The current state of B2B payments.
- How customers and the C-level perceive AR teams.
- Technology initiatives AR teams are most likely to investigate
or trial in the next 12-36 months.
About the Study
In the spring of 2021, Billtrust commissioned research firm
Paradoxes, Inc. to conduct an extensive qualitative and
quantitative research study to better understand the current state
of the accounts receivable (AR) industry in the United States.
Dozens of 60-minute in-depth interviews were conducted and an
online survey of more than 350 companies was fielded with
organizations of greater than 125 employees and between $50 million
to $10 billion in revenue.
About Billtrust
Billtrust (NASDAQ: BTRS) is a leading provider of cloud-based
software and integrated payment processing solutions that simplify
and automate B2B commerce. Accounts receivable is broken and relies
on conventional processes that are outdated, inefficient, manual
and largely paper based. Billtrust is at the forefront of the
digital transformation of AR, providing mission-critical solutions
that span credit decisioning and monitoring, online ordering,
invoice delivery, payments and remittance capture, invoicing, cash
application and collections. For more information, visit
Billtrust.com.
Forward-Looking Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are not intended to serve as, and must not be relied on
by any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of the Company. These forward looking statements
are subject to a number of risks and uncertainties, including those
factors discussed in the Company’s filings with the SEC, including
those under the header “Risk Factors” in the Registration Statement
on Form S-4 filed with the SEC by South Mountain Merger Corp. on
October 26, 2020, as amended. If the risks materialize or
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that the Company presently does not know or
that they currently believe are immaterial that could also cause
actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect the Company’s expectations, plans or forecasts of future
events and views as of the date of this press release. The Company
anticipates that subsequent events and developments will cause its
assessments to change. However, while the Company may elect to
update these forward-looking statements at some point in the
future, the Company specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing the Company’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210712005007/en/
Media Contact Meredith Simpson MSimpson@Billtrust.com
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