Study Uncovers Top Accounts Receivable and Payables Challenges

Tuesday, December 09, 2014

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:

  1. Reduce receivables processing time
  2. Increase adoption of electronic invoicing
  3. Lower Days Sales Outstanding (DSO)

Organizations struggle with controlling labor costs, customer resistance to electronic invoice adoption, and customer attempts to extend terms that can result in default, missed or delayed payments. To address these challenges and meet AR and AP goals, organizations recognize the importance of a holistic approach for reducing billing and payment cycle time. Companies need to shift away from inefficient and costly paper-based invoicing and payment processes in favor of a single AR and AP solution that’s faster and easier to manage.

Overcoming Accounts Receivable and Accounts Payable Challenges

Banks are uniquely positioned to help corporate clients address challenges in accounts receivable and accounts payable processes. But many banks are overlooking this lucrative opportunity.

PAYBOX, the industry’s leading reverse lockbox and integrated receivables solution for banks and corporations can help solve common AR and AP bottlenecks, improve working capital management and drive new revenue opportunities for banks. Our PAYBOX solution incorporates electronic invoice presentment, payment and management, integrated seamlessly with existing ERP and AR systems.

As a white-label solution, PAYBOX enables banks to extend their lockbox and treasury services to meet corporate demand and grow revenue. With PAYBOX, companies and banks benefit from:

  • Simplified AR and AP Management: The PAYBOX integrated receivables technology automates AR and AP processes, reducing manual labor requirements, data entry errors and back-and-forth coordination between corporate buyers and sellers. These benefits ultimately lower labor costs and accelerate invoice processing times by removing common bottlenecks and inefficiencies associated with traditional paper-based invoices. An integrated receivables solution like PAYBOX presents a unique growth and cash flow management improvement opportunity for organizations, which is why corporations that already send more than 70 percent of invoices electronically still prioritize the expansion of e-invoicing capabilities.
  • Stronger Electronic Invoicing Adoption: While only one-fourth of the banks we surveyed view electronic invoice adoption as a top priority for corporate clients, more than half of end-user corporations say it’s a top priority. By providing value-add integrated receivables services, banks can capitalize on e-invoicing demand, improve electronic invoicing adoption and revive dwindling revenue from traditional lockbox processing services.
  • Lower DSO: Companies can increase efficiency and accelerate payment collection with increased automation from an integrated receivables solution. This translates into significant improvements in DSO—for corporations, PAYBOX drives up to 80 percent improvement in DSO.

When asked to rate their own performance on a five-point scale (with lower scores indicating poorer performance), the majority of respondents ranked themselves in the middle of the scale, leaving much room for improvement. Respondents felt like they struggled the most with lowering DSO, and late and missed payments, which negatively impacts operations.

PAYBOX offers corporations a customizable solution to meet all of their AR and AP automation needs, while streamlining payment collections and financial supply chain processes. Banks can leverage PAYBOX as a white-label solution to add value to their corporate clients and help them address these critical challenges.

For more information about our study or to schedule a risk-free demonstration of PAYBOX, feel free to contact me at or (610) 212-2487.