Press Release: WAUSAU Financial Systems and Aite Group Uncover Receivables Processing Pain Points for Corporations
August 11, 2010
Study finds nearly 60 percent of respondents are not fully satisfied MOSINEE, Wis. -- August 11, 2010 -- In this credit constrained environment, the application of cash has become increasingly critical to the financial health and stability of companies. Today, WAUSAU Financial Systems announced release of research the company commissioned from Aite Group that highlights major issues negatively impacting corporations' costs and speed of processing receivables. Aite Group found the majority of the 80 U.S.-based companies (with $1 billion or more in annual revenue) they surveyed process their receivables in-house, yet 59 percent of respondents are not fully satisfied with their receivables processing. And, costs aside, 81 percent of respondents see the perceived value to their companies of implementing an integrated receivables hub, a solution that seamlessly integrates payments received from multiple sources and business applications to accelerate the application of cash and information through a uniform data stream. "Faced with the large and growing number of channels by which payments are received, variety of payments types and the complexity and application of data, nearly 60 percent of respondents see room for improvement in their company's receivables and cash application processes," said Nancy Atkinson, senior analyst, Aite Group. "It doesn't come as a surprise that a growing number of companies plan to implement an integrated receivables hub, with 42 percent citing their intent to do so in the next two years." WAUSAU Financial Systems, an industry leader in receivables processing solutions, designed ReceivableWorks™ to manage the comprehensive payment demands of businesses today. ReceivableWorks simplifies the overall payments architecture by reducing capture time, improving the handling of exception items and monitoring workflow in real time, all while automating, aggregating and accelerating the entire receivables cycle, resulting in increased cash for corporations. "We've heard the business challenges of corporations, insurers, utilities and others to reduce days sales and cash deductions outstanding," said Kathy Strasser, executive vice president of solution management for WAUSAU Financial Systems. "With a greater emphasis on expediting the application of cash and information, WAUSAU's solution betters businesses liquidity position, and increases their ability to manage cash and promote overall transparency." Receivables Processing Challenges of Corporations
- On average, 55 percent of corporations' receivables are processed straight through, which means for 45 percent, manual intervention is required to complete processing and payments do not automatically get posted to internal accounting systems.
- Three-quarters of companies have days sales outstanding greater than standard payment terms of 30 days, and an average days sales outstanding of nearly 45 days.
- More than one-third of companies experience unauthorized discounts/concessions of U.S. $500,000 or more annually.
"Regardless of the specific pain points felt by companies, WAUSAU Financial Systems has long recognized and addressed a way to manage receivables processing to provide the greatest potential to improve cash management," added Strasser. To review a copy of the full study, visit www.wausaufs.com. ### Survey Methodology
A total of 80 surveys were completed via online interviewing between March 26 and April 12, 2010. Individuals who qualified for participation in the study are employed by an organization with revenues of U.S. $1 billion or more and have primary responsibility or considerable involvement in decisions about receivables management. The 80 surveys took an average of 11 minutes for respondents to complete. In addition, 10 in-depth interviews were conducted via telephone by analysts from Aite Group who have extensive experience with receivables and treasury management processes. These 15-minute interviews were conducted with individuals meeting the same qualifications for the size of their organization and their own level of responsibility. About WAUSAU Financial Systems
WAUSAU Financial Systems is a premier provider of payment and receivables processing solutions, helping businesses of all types move money faster. With its products, services and consulting, WAUSAU works with customers to speed check processing, electronic presentment, ACH payments, transaction processing, distributed capture and enterprise content management. WAUSAU holds the No. 1 market share position in retail and wholesale remittance processing solutions. WAUSAU processes more than $1 trillion in payments each year through its work with more than 650 organizations, and maintains more than 30 percent of all U.S. lockbox volume. The company works with 13 of the 25 largest financial institutions, 42 percent of insurance companies with more than 5 million customers and 24 percent of utilities with more than 100,000 customers. More than 200 financial institutions use WAUSAU's remote deposit capture service, and industry consultants Celent and Aite have ranked WAUSAU's remote capture functionality above all competitors. For more information, visit www.wausaufs.com. About Aite Group
Aite Group is a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. It was founded by leading industry experts in Banking and Securities & Investments. Aite Group brings together a team of business strategy, technology and regulatory experts to deliver comprehensive, timely, and actionable advice to financial institutions and technology vendors. It seeks to become a true partner, advisor, and catalyst by exchanging ideas and challenging basic assumptions to ensure that our clients always stay one step ahead of the competition. For more information, visit www.aitegroup.com. Olivia.Mata@edelman.com
Olivia Mata
312-240-2913
|
Webinars
