Automating Receivables Management is a Natural Progression to Digitizing Corporate Cash Cycle Processes

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In new research, Mercator Advisory Group reports an increased recognition that receivables modernization is required as payables become digitized.

Receivables have been considered a specialized operation, not necessarily viewed as connected to other financial management processes. This is beginning to change as more companies recognize that effective processing of inbound payments also has significant impact on working capital effectiveness.

Automating some or all of the activities that encompass corporate accounts receivable has been climbing the priority list as financial professionals increasingly see how digitalization affects the cash cycle.

In a new research report, Receivables Management Is Back on the Radar, Mercator Advisory Group reviews how the age-old problem of efficiently collecting money from buyers and optimizing cash application can improve the bottom line through reduced cost and better cash flow. The growth in digital payments over the past several years is now having a follow-on effect in the handling invoiced payments, causing treasury to consider improving receivables management as well.

“There is a continuing trend for convergence of corporate financial systems and processes, generally referred to as procure-to-pay. Receivables have in the past been considered a specialized operation, not necessarily viewed as generically connected to the other financial management processes,” commented Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, author of the report. “This is beginning to change as more companies are recognizing that effective processing of inbound payments also has significant impact on working capital effectiveness. Banks are also getting the message as traditional lockbox services become inadequate to handle the increase of e-payments. Forward-thinking banks and their clients are now taking a closer look at supporting receivables processes with new technology.”

Highlights of the report include:

  • A detailed review of the ongoing challenges associated with late payments for companies across the globe.
  • Data for multiple regions and various markets regarding payment practices, including average terms, delinquencies, and days sales outstanding.
  • Analysis of how better receivables process automation has a direct impact on the cash conversion cycle and improves financial ratios.
  • Review of key receivables technology innovations that banks and their corporate clients should be considering in order to remain competitive in this increasingly digital era.

The document is 15 pages long and contains 5 exhibits.

Companies and other organizations mentioned in this report include: AFP, Atradius, Bank of America, Basware, Billtrust, CGI, CheckAlt, Citi, CreditPoint, Comdata, Coupa, Dade Systems, Deluxe, FIS, Fiserv, FTNI, High Radius, Invoicely, Mastercard, J.P. Morgan, Microsoft, Nacha, Oracle, PNC, Quickbooks, SAP, Serrala, SmartStream, Tradeshift, Transcentra, Tungsten, U.S. Dataworks, Visa, Wells Fargo, and Zoho.

Members of Mercator Advisory Group's Commercial and Enterprise Payments Advisory Service and Global Payments Advisory Service have access to this report as well as upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to media(at)mercatoradvisorygroup.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
@MercatorAdvisor
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