In our last blog exploring the challenges that organizations face when aligning accounts payable and accounts receivable, we introduced readers to the IDC MarketScape Worldwide Cloud and SaaS ERP Accounts Receivables and Accounts Payables Applications Vendor Assessment, a ranking of the top 11 providers of ERP for their ability to deliver effective AP/AR functionality.
The Role of ERP in AP and AR
Whether you are looking at a full ERP suite or a set of best of breed solutions, the ability to provide automated accounts payable and accounts receivable functionality in the wake of increased complexity, broader geographic scope, and increased digitalization—able to bring increased speed to businesses in the following two areas:
The most common AR processes ERP needs to handle are the following:
- Cash management (remittance, payment positing)
- Credit management (credit reviews, customer onboarding)
- Payments (invoicing, ACH, credit cards)
- Collection management (dunning letters, log calls)
The AP process is also critically important within the organization. Accounts payable is also changing rapidly with the introduction of new technologies to manage AP. The AP process touches upon:
- Purchase orders (POs) (standard PO, contract PO, blanket PO, and planned PO)
- Suppliers and vendors’ invoices (invoice creation and customization)
- Contracts (contract life cycle management)
- Agreements with vendors and independent contractors (vendor relations, compliance)
As ERP vendors innovate, they become more and more able to deliver on transformative, business-changing functionality that provides innovation to AP and AR.
What Makes a Vendor’s AP/AR Functionality Strong?
For companies comparing their options, this should be a top priority, as every business faces challenges in managing the way money flows through their the business and each has unique needs. IDC has found that among the key features that make a powerful AP/AR software:
- Built for Finance, By Finance: Developing software is hard, but doing so without the input of finance holds back a software. With the input of leaders in finance, as well as through partnerships with accounting institutions, software vendors can deliver better, smarter software.
- Microvertical Focus: Another trend in the last few years has been the push towards microverticals, a breakdown into smaller markets with a focus on delivering a highly focused product. For example, nonprofits break down further into nongovernmental organizations (NGOs) versus faith-based organizations. This microvertical strategy has the potential to drive a deeper connection between the customer and the software.
Sage Intacct Named Leader by IDC
The entire IDC MarketScape Worldwide Cloud and SaaS ERP Accounts Receivables and Accounts Payables Applications Vendor Assessment provides a deeper look into the benefits of aligning AP/AR within your ERP system and compared the leading ERP vendors for their ability to provide this alignment.
The report found that Sage Intacct provides a well-focused software option for small and medium businesses, but able to handle the needs of global companies. IDC recommends companies consider Sage Intacct if they are likely a fast-growing, small and medium-sized firm based in the United States with an appreciation for subindustry expertise in industries like financial services, franchise businesses, healthcare, hospitality, nonprofits, professional services, software, and wholesale distribution.
Learn what else was discussed in the report, IDC MarketScape: Worldwide Cloud and SaaS ERP Accounts Receivables and Accounts Payables, available for free from Sage Intacct. Ready to learn more? Contact us for more information.