Managing payroll is one of the most critical tasks that any entity has to perform. It would help if you had those cheques ready in a timely and efficient manner for your business to grow and evolve successfully. Corporations these days tend to focus more on attracting new businesses and clients, delve into the profitability metrics, and work on strengthening their EPS figures in their efforts to make the firm look glossy from the outside.
While working on these, giving attention to an efficient and timely payment system often takes a backseat. Improper management of remittances may lead to severe troubles such as loss of trust in the company, vendor grievances, disproportionate inventory count and even loss of clients. Business Process Outsourcing companies such as ARDEM provide a stepping stone toward efficient management of such activities, thus pivoting a stable Human Resources structure for its clients.
According to Tally Street, in 2020, 57% of B2B companies reported that their payments invariably came in late. According to an Atradius study conducted in 2018 on a vast majority of U.S. businesses, 90% of the respondents recorded that their company had been affected by late payments for customer invoices, adding that approximately 50% of their receivables were usually overdue. The Altradius study also showed the following results:
- 22% of the B2B businesses that were impacted by delayed payments had to do something to fix the cash flow.
- 20% of the businesses had to delay payments to suppliers and vendors.
- Approximately 20% of the businesses ended up losing revenue.