A recent survey of 250 financial professionals commissioned by fly wire (Nasdaq: FLYW), a global payments enablement and software company, has discovered that financial professionals are increasingly relying on enterprise resource planning (ERP) systems for their financial data. bottom. You’ve discovered an opportunity to improve your business by integrating your ERP with your payments software. paid. Specifically, 89% of respondents believe their business would save money if their cross-border accounts receivable processes were more tightly integrated with his ERP system.
In that new report, ERP Systems and Cross-Border B2B Payments: Expectations and RealitiesFlywire, investigated how financial professionals use ERP systems to process international transactions and improve payments from international customers.
Ryan Frere, EVP and GM of B2B at Flywire, said: “What the data shows is that there is room for improvement in how businesses receive payments, especially when it comes to cross-border payments.”
Finance leaders rely on ERP systems as a single source of truth and are champions of integration strategies
The majority of finance professionals surveyed are satisfied with the accounts receivable functionality provided by their ERP system. They act as a central database and one-stop shop for transactional data. Regardless of company size, surveyed financial professionals indicated high levels of satisfaction across major ERP vendors including Microsoft, Oracle, SAP, NetSuite, Sage Intacct and Infor.
Still, finance teams remain rigorously focused on improving how businesses get paid in this macro environment, revealing why tight integration with payment software is key. 88% said they need to improve their ability to receive payments from international customers due to a possible recession. Also, 67% of respondents feel that senior management does not understand the need for payment software enhancements in his ERP system. This can affect companies’ efforts to anticipate their payment needs as they expand their operations internationally.
Global companies cite DSO and localization as challenges in managing global receivables within ERP systems
Most of the survey respondents (74%) already operate globally, with the remainder planning to go global in the next few years. Also, someone experienced in the global arena will have far more challenges managing global receivables via an ERP system than someone planning to expand internationally or just starting out. reporting. Gaps range from reconciliation and billing in local currency (which almost doubles the likelihood of reporting problems for experienced global companies) to FX, higher days outstanding (DSO), local language billing, From local payment support to managing refunds. chargeback.
According to the report, the average DSO for international bonds is 97 days. But with more payment methods and more automation, financial experts believe they can reduce DSOs and save organizations money. 87% of respondents would like to offer additional payment methods to reduce their DSO. And 98% said there are advantages to processing domestic and international payments on the same platform.
According to one survey respondent, “I hope the process isn’t too difficult on the consumer side because it takes the information and time it takes to complete the process, which can be unmanageable and organized.”
“When it comes to efficiency in cross-border payments, A/R capabilities have untapped value, and not just in time and cost savings for the department itself,” continues Frere. “Finance leaders who understand the role payments can play in a great customer experience can actually help accelerate their company’s profitability.”
To experience the full report, please visit: ERP Systems and Cross-Border B2B Payments: Expectations and Realities
