SunGard today announced the results of its remittance and auto-cash processing survey.
The findings of the survey reveal that high lockbox fees, low productivity and the need for improved accuracy are driving corporations to adopt more sophisticated technology for receivables processing.
A poll of 100 finance executives across a diverse range of industries revealed that many companies are still operating with manual processing of checks and remittance advice. This results in high costs, delays in posting cash, increases in exceptions, errors and days sales outstanding (DSO) and poor visibility to cash flow due.
The survey findings demonstrate how the bottom line is affected: 53% of companies with at least 1B USD in revenue state that they are spending from $10-30K or more a month in lockbox processing fees, with half of those companies exceeding $30K monthly. These same companies also reported an average of 29 in-house full time equivalents (FTE's) to help with the cash application process. Other key findings represent delays in cash application of two or more days, issues with the accuracy of data and with matching of payments to invoices.
Kelly Kendall, senior director of revenue management at YRC Worldwide Inc., commented on the company's adoption of SunGard's AvantGard digital remittance and auto-cash processing technology: "Faced with rising costs and economy- driven softer shipping volumes, companies like YRCW have learned to leverage technology not only to improve operating margins, but also to enhance processing accuracy and speed the application of customer payments to clear open receivable dollars faster."
"We are seeing the pain points in the industry that are leading companies to seek better alternatives for remittance and auto-cash processing," said C.J. Wimley, executive vice president, corporate solutions for SunGard's AvantGard business unit. "SunGard helps organizations to reduce cycle times, decrease operating expenses and achieve a more accurate, timely and effective revenue cycle by helping them to automate and digitize the entire remittance data capture and cash application process."