Top 8 Challenges Effecting Supplier Remittances in 2023

The Power of Automated Cloud-Based Remittance Solutions

ARTICLE - In today's rapidly evolving business landscape, accounts payable teams face many challenges when providing suppliers with the crucial remittance detail they require. From transitioning to electronic remittance advice (ERA) to ensuring data integration, accuracy, security, and regulation compliance, accounting departments have their work cut out. However, a glimmer of hope lies in cloud-based applications like iCloudAuthority's eRemittances for NetSuite. In this article, we delve into the challenges faced by accounts payable teams in 2023 and explore how the innovative solution from iCloudAuthority can revolutionize the remittance detail process, offering streamlined operations, enhanced security, and improved collaboration.

Challenge #1 - Embracing Electronic Remittance Advice (ERA):

The era of traditional paper-based remittance advice is gradually fading away as organizations embrace electronic formats. However, the challenge lies in establishing secure and efficient electronic channels for accurately delivering detailed remittance information to suppliers. A recent survey by Accounting Today reveals that 68% of accounts payable professionals consider secure electronic delivery a top concern. With iCloudAuthority's eRemittances for NetSuite, these concerns are effectively addressed through a secure and user-friendly platform, ensuring reliable delivery of remittance information to suppliers.

Challenge #2 - Overcoming Data Integration and Standardization Hurdles:

Suppliers often find integrating remittance data into their accounting systems challenging due to variations in file formats, data structures, and communication protocols across organizations. This lack of standardization hampers their ability to automate the reconciliation process effectively. According to PayStream Advisors, 60% of suppliers encounter difficulties reconciling payments due to data integration challenges. Enter iCloudAuthority's eRemittances for NetSuite, a game-changer that offers seamless integration capabilities with NetSuite, ensuring smooth data flow and simplified reconciliation processes.

Challenge #3 - Ensuring Accuracy and Completeness of Remittance Information:

Suppliers heavily rely on accurate and comprehensive remittance details to correctly apply for payments and reconcile their accounts. Unfortunately, incomplete or inaccurate remittance information often leads to delays, errors, and disputes. The Institute of Finance and Management (IOFM) reports that 45% of suppliers face issues due to incomplete remittance advice. iCloudAuthority's eRemittances for NetSuite comes to the rescue, automating data extraction from invoices and purchase orders to minimize the risk of errors and provide complete information for suppliers' reference.

Challenge #4 - Promoting Effective Communication and Collaboration:

Effective communication and collaboration between buyers and suppliers is the key to resolving remittance-related issues promptly. However, establishing efficient channels and protocols for addressing questions, clarifications, and discrepancies can be challenging, particularly in large-scale operations or when dealing with a high volume of suppliers. Ardent Partners reveals that 42% of accounts payable teams struggle with communication and collaboration. With built-in collaboration tools, iCloudAuthority's eRemittances for NetSuite facilitates seamless communication between buyers and suppliers, quickly resolving payment-related queries and ensuring transparent information exchange.

Challenge #5 - Safeguarding Security and Privacy:

Since remittance detail often contains sensitive financial information, ensuring data security and privacy becomes a critical challenge. Organizations must implement robust security measures and comply with data protection regulations to safeguard supplier information. According to Verizon's 2022 Data Breach Investigations Report, 47% of data breaches in the financial sector involve sensitive payment data. iCloudAuthority's eRemittances for NetSuite uses native NetSuite security to send remittance detail to suppliers.

Challenge #6 - Bidding Farewell to Manual Processes and Inefficiencies:

In this digital age, it's high time we bid farewell to manual processes that plague remittance detail delivery. Printing and mailing paper checks or sending separate remittance advice documents are time-consuming but also error-prone and inefficient, leading to delays and increased costs. A survey by Levvel Research reveals that 62% of organizations consider manual processes as their top accounts payable pain point. iCloudAuthority's eRemittances for NetSuite automates the remittance delivery process, eliminating manual intervention, reducing errors, and accelerating the payment reconciliation cycle.

Challenge #7 - Achieving Seamless Integration with Payment Systems:

Linking remittance detail with payment systems can be daunting, especially when dealing with different payment methods such as checks, ACH, and wire transfers. Effectively integrating payment and remittance data streamlines the reconciliation process for buyers and suppliers. Levvel's research highlights that 68% of organizations struggle with payment integration challenges. Enter iCloudAuthority's eRemittances for NetSuite, which is seamlessly built inside NetSuite, consolidating payment and remittance data and providing a unified view for efficient reconciliation. (Link to Suite of Products) the iCloudauthority payment suite of AP and AR products provide fully intergrated additional functionality.

Challenge #8 - Scaling Up and Automating for the Future:

As businesses grow and suppliers increase, scalability and automation become pivotal for efficient remittance detail management. Accounting systems should be capable of handling higher volumes of remittance detail while reducing manual intervention and human errors. IOFM's report states that 57% of organizations struggle with scalability and automation challenges. Luckily, iCloudAuthority's eRemittances for NetSuite is built on a cloud-based infrastructure, providing scalability, reliability, and automation capabilities to ensure smooth operations even with a growing supplier base.

The Way Forward

The challenges accounts payable teams face in providing suppliers with the needed remittance detail are substantial. However, embracing a cloud-based solution like iCloudAuthority's eRemittances for NetSuite can transform these challenges into streamlined operations, enhanced collaboration, and fortified security opportunities. With features designed to address data integration, accuracy, communication, security, scalability, and compliance, eRemittances for NetSuite emerges as a powerful tool empowering accounts payable teams to optimize supplier remittance detail management in today's dynamic business landscape.

If your organization is planning the next steps in your organization's digital transformation or some processes require new automation, contact iCloudAuthority today to learn more about the Payment Suites for NetSuite.