Power of Direct Insite
Direct Insite Blog
To help organizations and banks understand the critical issues facing accounts receivable and accounts payable processes in modern enterprises, we partnered with Blue Hill Research to learn how corporate end users and banks view AR and AP processes.
As the end of 2014 looms near, we wanted to uncover the top issues and goals companies have in accounts receivable and accounts payable processes. We worked with Blue Hill Research to explore two distinct perspectives, including corporations and banks, when it comes to AR and AP processes. For corporations, we discovered the three most important priorities for receivables and payments processes, which include:
When we think about business banking relationships, some of the first things that come to mind are things like lockboxes, disbursement accounts, and positive pay arrangements. But what about things that help operationally with receivables and payments processes? Are they in the mix? That was one of the questions we wanted to explore in a collaborative survey pilot between Blue Hill Research and Direct Insite.
Despite the continuing push of companies to eliminate paper processes to reduce costs and support “green” initiatives, the adoption of electronic payments and remittances has been painfully slow.
An overreliance on paper-based payment processes represents a missed revenue and growth opportunity for enterprise organizations. Although e-invoicing is gaining traction in the enterprise space, traditional mail-in check payments still account for approximately 60 percent of all business-to-business invoice payments.
Corporations and banks increasingly recognize the inefficiencies with receivables processes.
Electronic payments adoption is maddeningly slow.
During Bill Clinton’s first campaign for president, his advisors famously hung signs in his campaign headquarters that read, “It’s the economy, stupid!” Clinton’s advisors did not want staff to become distracted by marginal campaign issues, and lose sight of what would truly motivate voters that year.
The benefits of using electronic invoicing for accounts receivables are clear to suppliers.
“The future of lockbox is murky.” That was the sobering message that Andy Schmidt, a senior analyst at CEB TowerGroup, told a room full of bankers at a recent industry conference.