Billtrust-Commissioned Research Examines the Spectrum of AR Modernization, Offering Ways to Improve Performance
Billtrust , a B2B accounts receivable (AR) automation and integrated payments leader, has released new findings from a proprietary in-depth research study illustrating that best-in-class AR organizations have 25% better customer service levels and 23% collections improvement versus the average AR department. In addition, best-in-class teams offer 20% more self-service capabilities and receive payments 15% faster than average.
The research, which introduces an AR maturity model, is summarized in a new white paper, “The State of Accounts Receivables Part Two: A Guide to Modernization.” AR professionals can also conduct their own maturity model self-assessment to identify key strengths and growth opportunities.
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“Staying up to date with today’s AR innovations is critical to our success”
The research, which outlines a 4-stage spectrum ranging from ‘Manual’ and ‘Scaling’ to ‘Modern’ and ‘Best-in-Class,’ identified that the most modern AR teams have these unique characteristics:
- 100% digital payments and invoicing. All payments accepted are digital and invoices are presented to customers electronically.
- Cash forecasting. Unlike traditional AR capabilities, best-in-class teams can forecast their cash flow and proactively identify liquidity issues.
- Predictive analytics. AR teams leverage cutting-edge machine learning and predictive analytics for reporting and accuracy.
- Touchless cash application. Reconciliation is done automatically without the need for human intervention.
- Highly proactive account coverage. Proactively reach out to accounts who are past due before they escalate into 60 or 90 days past due.
The research also indicated that modern and best-in-class teams measure success differently than more manual counterparts and place increased importance on key performance indicators such as customer satisfaction, cash conversion and collections effectiveness versus measures like immediate cash flow (DSO). This reflects a focus shift from immediate cash in the door to more programmatic efforts to manage collections and deliver a better customer experience.
“Staying up to date with today’s AR innovations is critical to our success,” said Nathan Hurst, CEO of Waterlogic, a leader in point-of-use water purification and dispensing systems. “For nearly a decade, the automated invoicing, payments, cash application and collections solutions that we’ve implemented have enhanced our order-to-cash processes and given us a significant competitive advantage, accelerating cash flow and allowing our teams to eliminate manual tasks to provide better customer service.”
“There is a powerful connection between strong AR capabilities, productivity and world-class customer experiences,” said Steve Pinado, Billtrust President. “The key outcome of this study is to help AR organizations identify their modernization stage and what next steps they need to take to move to the next level. We encourage AR teams to self-assess using the maturity model and determine how to realize the benefits of faster, more efficient processes to impact both cash flow and customer satisfaction.”
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