Study finds most companies have automated too few steps in the AR process to achieve true benefits of end-to-end AR automation
London, United Kingdom/Boston, MA, May 10th, 2022 – BlueSnap, a global payment orchestration platform committed to helping B2B and B2C businesses accept and optimize payments around the world, today announced the results of its 2022 Automating Accounts Receivable survey.
For this report, BlueSnap surveyed executives globally to examine the extent to which businesses are adopting automation in their accounts receivable (AR) processes and its benefits. One major takeaway from the findings: organizations have only automated a fraction of their AR processes with plenty of gaps left to close to reap the full rewards of true end-to-end AR automation.
Supply chain issues and inflation put increased pressure on businesses to get paid on time. Now more than ever, it is imperative businesses find ways to increase efficiencies to keep a positive cash flow. BlueSnap’s survey results found that 89% of businesses that have automated AR processes are getting paid within their agreed payment terms or faster.
The data shows that nearly half (49%) of global businesses are stuck using legacy AR processes. While many organizations have started to automate AR processes, they are often only automating one or two steps. When it comes to generating invoices, only 19% have completely automated the process and a mere 15% have completely automated sending the invoices.
Only 8% of the companies surveyed had completely automated the setup and management of customer payment plans, while more than half (51%) said they had the process mostly, but not completely, automated. These fragmented attempts are small steps in the right direction, but to see the full operational benefits like better cash flow, increased customer satisfaction and improved employee productivity, it is essential for businesses to completely automate AR processes.
Nikhita Hyett, Managing Director, Europe, at BlueSnap said: “It is clear from the report that most companies have an AR automation gap that must be filled in order to operate at optimal efficiency. Hence, it is encouraging to see that almost 90% of the senior executives that we surveyed now recognize the value of AR automation and are willing and ready to invest in it. The pandemic has done a lot to show businesses the weaknesses in their operating processes – many of which are costing them money. To fully absorb the benefits of automation, now is the time for businesses to completely pivot away from legacy, manual processes.”
The factors preventing organizations from fully automating their AR processes include: a lack of understanding around the technology available (71%), a fear that automation will take the human element out of the business (47%), lack of technical expertise to implement new systems (44%), and a concern that people will lose their jobs (23%).
To review the full report, please visit: https://bit.ly/3snxBYM
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BlueSnap helps businesses accept global payments in a better way. Our All-In-One Payment Orchestration Platform is designed to increase sales and reduce costs for all businesses accepting payments. BlueSnap supports payments across all geographies through multiple sales channels such as online and mobile sales, marketplaces, subscriptions, invoice payments and manual orders through a virtual terminal. And for businesses looking for embedded payments, we offer white-labeled payments for platforms with automated underwriting and onboarding that supports marketplaces and split payments. With one integration and contract, businesses can sell in over 200 regions with access to local card acquiring in 47 countries, 100+ currencies and 100+ global payment types, including popular eWallets, automated accounts receivable, world-class fraud protection and chargeback management, built-in solutions for regulation and tax compliance, and unified global reporting to help businesses grow. BlueSnap is backed by world-class private equity investors including Great Hill Partners and Parthenon Capital Partners. Learn more at BlueSnap.com