Greater than half of B2B monetary departments say managing billing disputes is one in every of their most difficult duties—an issue exacerbated by way of guide strategies to handle invoices, in keeping with a brand new examine of 300 U.S. B2B monetary division professionals.
The examine, performed in April 2020 by monetary expertise and companies agency MSTS, discovered that 94% of respondents mentioned they enter “at least some” bill or billing data into their accounts/receivable (A/R) methods. The examine notes that “billing errors are key contributors to decreased profitability, disputes and late payments,” including: “Over half (55%) of respondents say managing disputes is one of the most challenging tasks for their A/R team and 99% of teams say disputes contribute to late payments.”
The examine additionally discovered:
- 25% of respondents say that guide cost strategies like paper checks are the first invoice-payment technique their clients use;
- 27% use an in-house credit-assessment system to display new clients;
- 48% ship invoices by e mail, 18% by conventional mail;
- 27% say they handle distinctive invoicing and billing necessities for greater than half of their clients; and
- 33% say they’ve common every day gross sales excellent—or the common variety of days it takes to obtain cost from clients after a sale—of 45 to 60 days, a delay typically ensuing from errors in invoicing and billing statements.
Counting on guide processes to handle billing and invoicing is much more difficult throughout the pandemic when many companies work outdoors of their normal workplace house, says Brandon Spear, president of MSTS. “If the main way they get paid is by paper check, how are they processing them; and if invoices are mailed, how are they capturing them? They need staff at the office to do that.”
Spear says MSTS has observed extra B2B corporations pivot throughout the pandemic from in-person gross sales to relying extra on ecommerce, which has created extra curiosity in deploying on-line purposes for managing buyer credit score in addition to invoicing, billing and funds.
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