In case you missed it, last month we launched our all-in-one Global Accounts Receivable solution, designed to simplify credit, risk and invoice management. For too long, B2B accounts receivables and accounts payable processes have been plagued by inefficiencies, adding untold stress to accounting professionals. One of the most significant challenges is the over-reliance on paper-based documentation and manual data entry, which is cumbersome and prone to errors. Talk to anyone who works in accounts – they’ll relay the pain of wading through financial statements and receiving invoices in various formats, requiring them to manually extract information and key it into their native accounting systems.

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The lack of standardized invoicing practices across industries and regions makes it difficult for businesses to streamline their accounts receivable and accounts payable activities. Without standardized formats and protocols, reconciling invoices with purchase orders and delivery receipts can be extremely time-consuming and arduous, leading to administrative issues and overdue payments. Without automated workflows and real-time visibility into invoice status, businesses are unable to proactively resolve issues and maintain positive relationships with customers. Additionally, the manual nature of accounts receivable processes makes it challenging to track payments and outstanding invoices effectively. Businesses often struggle to maintain accurate records of payments received and outstanding invoices, leading to cash flow inefficiencies and increased risk of overdue payments, unpaid invoices and late payment penalties. If this happens on a monthly basis or even semi-regularly, it will undermine the integrity of customer relationships.

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The Benefits of Integrating Automation in Accounts Receivables

Embracing digital solutions and automation tools can help businesses across an array of industries to improve their accounts receivables and accounts payable processes, while bypassing many of the challenges associated with manual workflows. Improved accuracy, transparency and productivity are the key by-products of standardized invoicing practices, making paper-based documentation and manual data entry redundant – to the delight of accounts professionals around the world. With automated invoicing solutions, businesses can generate and send invoices electronically, ensuring consistency and accuracy while mitigating the risk of errors and delays.

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Additionally, automation technologies and advanced invoicing software can empower businesses to revamp the reconciliation process by matching invoices with purchase orders and delivery receipts in real-time. By leveraging Machine Learning techniques, automated reconciliation tools can identify discrepancies and exceptions quickly, allowing businesses to resolve issues promptly and minimize the risk of overdue payments while enabling a more seamless billing process. Automation can also expedite payment collections by providing customers with multiple payment options and reminders. Automated payment reminders can also be sent to customers at predefined intervals, reducing the need for (annoying) manual follow-ups. Integration with payment gateways and accounting systems also allows for seamless payment processing and reconciliation, improving cash flow management.

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Automated Accounting: Follow the Money

Gartner predicts that the expenditure on accounts-focused automation and supplier e-invoicing software is expected to reach up to $1.75 billion by 2026 – a near two-fold increase from the $925 million level in 2021. While the projected surge in automation investment in this field is promising, the current level of adoption among businesses is surprisingly low. A new report from media outlet PYMNTS noted that only 5% of mid-sized firms have fully completed the automation of all accounts receivables processes. Additionally, more than one-third have not started any automation and are still using paper trails and manual entry practices. My sincere condolences to the accounting teams at these enterprises! However, in line with Gartner’s prediction for AP automation investments to skyrocket, 93% of mid-sized firms are actively planning more automation for accounts receivables and accounts payable processes. For these firms, the benefits of embracing automation are crystal clear.

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44% of surveyed firms anticipate automation-powered AP to deliver cost savings and improved cash flow over the next three years, while 48% envision faster and more reliable payment processes. Automated accounts receivables solutions provide businesses with real-time insights into invoice status, payment history, and customer behavior, enabling proactive decision-making and strategic planning. Meanwhile, 26% of survey respondents believe automation will enhance relationships with their customer base, and 22% expect a reduction in the risk of fraud.

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Against a backdrop of unfavourable macroeconomic and geopolitical conditions, enterprises should feel compelled to embrace as many productivity ‘quick wins’ as they can, particularly when it comes to improving cash flow management. Automation can provide a timely, silver bullet solution, making it easier to synchronize data across multiple platforms and departments within an organization, delivering greater visibility into their accounts receivables management processes. With so many companies planning on integrating automation across their AP operations (93% - according to PYMNTS), companies that are asleep at the wheel will be at a marked disadvantage moving forward.

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The 40Seas Global Accounts Receivable platform centralizes invoice data in a user-friendly dashboard, allowing companies to easily track payment statuses, manage due dates, and expedite invoice approvals, mitigating the risk of payment delays. By connecting their ERP or accounting software, companies can enjoy a streamlined reconciliation process, matching invoices with purchase orders and delivery receipts in real-time, while collecting payments via credit card, direct debit or digital wire transfers in different currencies worldwide. The platform also enables companies to offer extended payment terms of up to 90 days to their customers, without absorbing any credit risk, so they can focus on driving sales volumes rather than debt collection and underwriting payments. 40Seas is available as an API or stand-alone platform, both of which can be seamlessly embedded into checkout portals to improve business flow and deliver more convenience to customers.

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For more information, visit our homepage and click ‘Request a Demo’ on the top right hand side of the page, a member of our team will be able to handle your query!

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