Companies are more aware than ever of the need to simplify their payables and receivables procedures, but for organizations that have relied on the same manual payment tools and systems for decades, introducing quicker payment procedures is sometimes easier said than done.
Organizations may find it difficult to simplify their B2B payment processes, especially when the number of payment options they must accept expands. Companies need to be able to swiftly integrate real-time payments (RTP) and other technologies as they become available, as well as manage all of their different payments in one place.
Because of this, companies are keen to make the switch from manual AP and AR processes to digital-first initiatives.
Joint Initiative
Technologies like RTP and enterprise resource planning (ERP) has a big role in this process. Connecting RTP and ERP and other corporate systems to increase the capability of accounts receivable (AR) payment receipts is the process that lays the groundwork for future innovation and orchestrates the dance between finance teams, RTP solution providers, and banks.
Given that businesses must accept various payment channels, integration of receivables is a significant development that will continue to gain momentum. It is advantageous for businesses to be able to access and manage all of their receivables, regardless of the channel or payment type.
Getting Past Obstacles
A significant barrier is the inability of firms to transport payments and all related information swiftly and conveniently. Data has always been the main cause of pain throughout the whole AR/AP process. The difficulty increases with the size of the business in terms of the amount of payments and invoices they are eventually trying to process and subsequently automate.
Businesses’ AP and AR processes might become disjointed and stop functioning. Various banks or financial players follow different norms, and some businesses provide exclusive invoicing and payment options.
Three-Part Ballet
Even if a company agrees to use some of these new capabilities, the project will eventually include the company’s financial partners, the technology provider, and the company itself.
Businesses may be able to advance in their digital transformations and engage with expanding immediate payment systems like The Clearing House’s RTP network through such collaboration.
