Many companies remain reluctant to grandfather antiquated accounts receivable workflows and collection processes, leaving their cash supply suffering as a result. Many SMB’s are apprehensive to change due to a number of factors including but not limited to:
- Fear of losing control. Companies want to save money but don't want to reduce their workforce or drastically alter their core functionality, which may potentially harm their culture in the process.
- Loss of visibility. Concerns about losing visibility and flexibility against the need and desire to transition from manual processing to modern-day automation.
- Employee apprehension. Many employees see automation as a threat that may eliminate their roles altogether, especially those that have traditionally overseen mailroom operations, invoice remittance and collections processes.
- Legacy processes that work. Hesitancy is particularly common among SMBs, especially if they already have an established set of processes that have been in place over months or years, or have a leadership team that sees no reason to invest in change.
- Disparate system setup. Not every business is set up for the switch to automation, especially with legacy system architectures, dated organizational structures, and lack of internal desire to drive change.
- Cost-related constraints. Reluctance to automate processes can be far more costly than the solutions themselves, and some SMB’s feel they need large heaps of cash to make the change. This is often not the case at all, as many technology companies offer cost-effective and purpose-built cloud-based solutions.
- Existing ERP software in place. Existing ERP software is excellent, but a fundamental missing component is the ability to synchronize data in one place, functionality to store information in one place and most importantly – the facilitation of payment and collections between customer and supplier.
- Lack of IT resources. Most SMB’s don’t have the luxury of large, experienced IT teams. Further, they may have apprehensions about the perceived complexity of implementing an AR automation solution. The good news, however, is that many of today’s user-friendly cloud-based solutions are ‘plug-and-play', requiring little to no IT involvement.
Customer demands, expectations and business standards continue to rise in most markets, verticals and regions around the world – all of which is at the heart of competitive growth. The pressure to innovate and evolve is perpetual, and as businesses strive to meet changing demands, they should turn to improved technologies and more intelligent automation to stay relevant and profitable. While the reservations stated above are indeed valid, the need to transform is paramount. According to IDC, 70% of surveyed SMB’s are accelerating their digitalization rates to address COVID-19 challenges. The most digitally mature SMB’s will be able to respond faster to changing market conditions and grow their revenue. As SMBs make a significant contribution to the US economy, revenue growth is a key benefit of small business digital engagement. In fact, according to research conducted by Deloitte:
- Digitally engaged small businesses create more jobs.
- Digital tools help small businesses export and diversify their customer base.
- Digital tools drive innovation through new product offerings
- Digitally engaged small businesses experience benefits across the entire sales funnel.
"Digital tools create significant opportunities for SMBs to grow and innovate in a dynamic and competitive business environment. Technology enables businesses to increase connectivity and engagement with their customers, and can provide SMBs with a better understanding of their customer base. The use of digital tools can help SMBs to improve their performance and respond to changes in the business and consumer landscape in an agile manner."
We know that SMB’s need an efficient solution to manage and power their workflow and business decisions as a result. With the right AR solution, companies can reduce their days sales outstanding (DSO), render more accurate forecasts and realize improved data. How can you pick the best-fit solution to drive maximum impact for your business? Read our whitepaper to find out more and contact us to see what features are absolutely necessary when implementing an AR solution.
YayPay by Quadient – a SaaS-based predictive and automated AR management platform – helps financial teams perform better, manage receivables more efficiently, and get payments from clients more quickly. By integrating with your existing ERP, CRM, accounting and billing systems, YayPay combines real-time accounts receivables, analytics, and payment predictions to help businesses increase and accelerate cash flow.
