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With Covid-19 pushing a greater need for digitization and fintech’s globalization inciting interest outside B2C, it’s fair to say that the B2B payments industry experienced significant changes last year which, in many cases, enabled businesses to survive the fallout of the pandemic. Operating in a low cash flow environment reminiscent of 2008, payment delays have caused significant negative consequences to their days sales outstanding (DSO), which when grouped with Covid’s impact on supply chains, has threatened their overall ability to survive. As more buyers find payments have been lost in the mail or delayed to the point that their credit lines are not replenished or they cannot reconcile their books at month end due to uncashed checks, teams will continue to say goodbye to stale processes and adopt processes that get cash through the door quicker. Which is why we’ll see an increase in adoption of automated tech that enables brands to reduce the costs associated with payment processing, increase cash flow through faster payments, improve operational efficiency, and enhance the overall customer experience.

Automate your accounts receivable process as much as you can Automate your accounts receivable process as much as you can The best solution to human absences is to move humans off repetitive tasks and onto activities that contribute toward strengthening customer relationships or strategy development. Unfortunately, single-authorization cards can cause havoc for accounts receivable teams if the single-authorization card number doesn’t automatically update on the customer’s account. Cash application automation can help overcome this new challenge, and the built-in security of virtual credit cards is a big bonus for AR teams who are working remotely. Employee absence in the order-to-cash process may mean delayed application of payments on a customer’s account.

The main ingredients to an easier, more customer-centric payments process are more electronic billing and digital payments. If you are delivering invoices electronically through a self-service portal, your customers can pay you directly in the portal using digital payments. They are generally receptive to receiving invoices and making payments through a self-service portal maintained by their suppliers. Delivering your customer’s invoices and taking their payments are customer-facing activities.

Virtual credit cards, however, are ready-made for straight-through-processing and, according to PYMNTS.com, “vendors are adopting automated solutions that can help them easily receive and process card payments and their associated data. ” Virtual cards are suited to the work from home environment because they offer great security, fast funds, attached remittance and are more easily processed than traditional payments. But they will only realize the full potential of the digital transformation of the AR / AP relationship if they leverage the AR automation tools now available to make transactions on their end faster and friendlier to the remote-work environment. To avoid this, AR teams should look to SaaS solutions that help increase work from home productivity while giving managers insight into their team’s activities.