All-in-One Payment Systems Assist SMBs in Streaming Profits, According to a New Report

SMBs (small-medium scale businesses), the AP (accounts payable), and AR (accounts receivable) executives who manage the transactions and invoices they receive are aware that improved payment procedures would benefit them more. 

Still, the road to frictionless transactions is not generally understood.

Future Business Payables Innovation: The Impact of New B2B (business to business) Forms Of payment on the Back Office. 

For instance, the cooperation between Plastiq and PYMNTS investigates how firms may take a proactive approach to alter AP/AR procedures and remove B2B payments friction. The research is predicated on a poll of 500 SMBs having sales ranging from $500k to $100 million and AP/AR managers with SMB customers.

Key findings:

Most AP/AR CEOs agree that an all-in-one transaction system would assist SMBs right now. SMBs and executives believe that more convenient payment procedures are required and that utilizing a single payment platform to handle transactions is advantageous. In addition, eight out of the ten CEOs and six of the ten SMBs think all-in-one transaction solutions will instantly conserve SMB’s time.

Nearly 60% of SMBs believe it would spare them time, and 52% believe it would simplify managing financial flows. Furthermore, 40% of SMBs feel such solutions might enhance receivables tracking. While 37% think they would have the capacity to adjust data automatically. Finally, 32% believe they would enhance working capital.

According to numerous SMBs, inefficient payment procedures significantly influence cash flow control since fluctuating payment transaction times can impair financial planning.

Over half of small and medium-sized businesses consider an all-in-one payments system to streamline financial operations. In addition, SMBs polled feel that a unified transaction option for all B2B transactions will increase cash flow transparency and facilitate better AP/AR monitoring, both critical for financial plans. Transparency is also essential for supplier interactions.

Suppliers and purchasers should be able to receive and transfer payments in various ways. Unfortunately, some of the most popular existing payment mechanisms, such as ACH(automated clearing house) payments and Debit payments, are insufficient in reducing payment resistance on both ends of B2B transactions.

The lack of information among SMBs about all-in-one solutions could be a significant impediment to smooth business to business payments. Many firms in this study have reservations regarding combining the tech with current processes. 

Four out of ten SMBs report using an all-in-one payments system. However, they are likely ignorant of how they could utilize it to oversee the entirety of their AR and AP operations.

Because of this knowledge vacuum, many firms may resort to a third-party alternative that oversees the integration procedure, mainly if technological resources are scarce.

Author bio: 

Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of fidelity payment services reviews. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.