CFOs Prefer AR Automation for Productivity - Recent Survey Shows

shutterstock_129600581For most middle-market companies, evaluating the performance of accounts receivable (AR) is an uphill battle. Not only do industries differ on which measures to use in evaluating AR, CFOs themselves often do not have the time or budget to analyze inefficiencies related to DSO.

The growth and widespread adoption of automation technologies has made this process easier than ever before. Rather than throw more money and more people at the problem, CFOs can use innovative platforms to streamline their DSO performance and boost productivity. The real question is whether finance leaders are actually seeking out and implementing these new tools.

That was the question YayPay sought to answer in its primary survey of 50 CFOs and finance leaders of small- and medium-sized enterprises (SMEs). Over the span of several months, we interviewed finance leaders across a wide spectrum of industries, including manufacturing, media and advertising, and information technology. Below is what we found.

Company Profile of Participating Companies

The company profile of the 50 firms surveyed is broken down as follows:

  • Median DSO: 60 – 90 days
  • Median revenues: $10 million – $50 million
  • Median employee base size: 51 – 200

Key Findings - Focus on Technology Adoption & Productivity

The results of the survey clearly indicate that CFOs are thinking of new ways to boost cash flow while increasing productivity. The strong majority already use enterprise resource planning (ERP) and around one-half expressed an interest in AR software.

When we crunched all the numbers, we found that:

  • Over two-thirds of respondents are interested in accounts receivable automation software
  • Over 70% already use middle-market ERPs, such as NetSuite, Intacct or Quickbooks Online
  • Approximately one-third of respondents use or have used a customer relationship management (CRM) tool, such as Salesforce.

What the Results Mean

Even with a small sample, the survey results show that productivity is on the mind of most CFOs. Even those who didn’t expressly state a desire to explore AR automation were likely to agree that improving cash flow is important. When it comes right down to it, productivity and cash flow are directly when it comes to collections. Likewise, the Credit Research Foundation has identified investment in technology as an essential component of productivity. Productive teams generate more cash flow in shorter intervals with fewer people involved.

YayPay is an AR workflow software and CRM that empowers CFOs and AR Managers to accelerate cash flow and make AR management more productive. Click here to explore what automation can do for your AR department.