Businesses are more aware than ever of the need to eliminate friction in their receivables and payables processes, but for businesses that have relied on the same manual payment tools and systems for decades, integrating faster payment methods is often easier said than done.
Smoothing out your B2B payment processes can be challenging, especially as the number of payment types businesses need to support grows. It’s imperative for businesses to have systems in place that allow them to manage all of their disparate payments in one place – and easily integrate real-time payments (RTP) and other tools as they arise.
As such, organizations are seeking the next steps in their migrations away from manual AR and ` processes to digital-first methods.
A coordinated effort
Enterprise Resource Planning (ERP) systems and RTP can play an important role in this process. Beginning the integration process of RTP and ERP and other enterprise systems to expand the repertoire of AR payment receiving functions lays the foundation for further innovation and coordinates the dance between finance teams, RTP solution providers and banks.
In accounts receivable, companies need to support multiple payment channels, so integration of accounts receivable is an important trend that will develop at an accelerated rate. The advantage is that companies can see and manage all their receivables regardless of the payment method or channel.
Supporting integrated receivables or other embedded finance functions is becoming increasingly important as companies across multiple sectors seek to move away from paper checks and manual Accounts Payable (`) and AR processes in favor of digital-first methods.
overcome barriers
A major obstacle holding companies back is their inability to quickly and easily transfer not only funds but also all related information. Data has always been the biggest pain point in the entire AR/` process. The bigger the business, the bigger the problem in terms of the number of payments and invoices that ultimately need to be processed and then automated.
Fragmentation can stall AR and ` processes in organizations. Different banks or financial players use different standards, while other operators offer separate formats for invoicing and payments.
As such, it is vital for businesses to ensure they can easily view all of their payments in one place, indicating that ERP systems and treasury solutions still play a key role in businesses’ ` and AR processes , even if they focus on digitization.
How companies’ ERP systems work is also critical for their financial and technology partners, as neglecting these systems can seriously impede innovation. Ultimately, companies cannot introduce a new eBill delivery method, invoicing, or even a new payment type unless those ERP or treasury management applications support changes and new payment types and formats for those bills and workflows.
Three Way Ballet
Even if a company wants to adopt some of these new capabilities, it ultimately becomes a three-way project between the company, the technology provider, and the company’s financial institutions.
Such collaboration can help open the doors for businesses to take further steps in their digital transformation and engage with expanding instant payment services like The Clearing House’s RTP network.
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